GOVT vs VTI
GOVT vs VTI
iShares US Treasury Bond ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | GOVT | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $43.6B | $663.5B | |
| Dividend Yield | 3.57% | 1.07% | |
| Holdings | 216 | 3,543 | |
| YTD Return | -2.28% | +13.92% | |
| 1Y Return | -0.94% | +24.07% | |
| 3Y Return (annualized) | +2.46% | +20.88% | |
| 5Y Return (annualized) | -1.39% | +12.47% | |
| Volatility (annualized) | 4.5% | 15.3% | |
| Max Drawdown | -23.4% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 14, 2012 | May 24, 2001 |
GOVT vs VTI Performance
iShares US Treasury Bond ETF (GOVT) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year GOVT returned -0.94% while VTI returned +24.07%. Year to date, GOVT is down 2.28% versus a gain of 13.92% for VTI.
Over three years, GOVT compounded at +2.46% per year against +20.88% for VTI; over five years the annualized figures are -1.39% and +12.47% respectively. Across the full 14-year window we track, VTI has the edge at +8.13% annualized vs +1.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 4.5% for GOVT. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -23.4% for GOVT and -56.6% for VTI. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GOVT charges 0.05% per year while VTI charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, GOVT currently yields 3.57% against 1.07% for VTI.
Holdings Overlap
GOVT and VTI share 0 holdings out of 2971 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GOVT or VTI?
GOVT has an expense ratio of 0.05% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, GOVT or VTI?
Over the past year GOVT returned -0.94% vs +24.07% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (14 years), GOVT annualized +1.04% vs +8.13% for VTI. Past performance does not guarantee future results.
Which is riskier, GOVT or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 4.5% for GOVT. Worst drawdown: GOVT -23.4% vs VTI -56.6%.
Should I hold both GOVT and VTI?
GOVT and VTI have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GOVT and VTI?
GOVT and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2971 unique securities.
Which pays a higher dividend, GOVT or VTI?
GOVT yields 3.57% while VTI yields 1.07%, so GOVT currently pays the higher dividend yield.
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