INCM vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricINCMVTIWinner
Expense Ratio0.38%0.03%
AUM$1.7B$663.5B
Dividend Yield5.04%1.07%
Holdings3573,543
YTD Return+7.96%+13.92%
1Y Return+14.51%+24.07%
3Y Return (annualized)+11.36%+20.88%
5Y Return (annualized)-+12.47%
Volatility (annualized)7.2%15.3%
Max Drawdown-7.8%-56.6%
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryAllocation/BalancedEquity
InceptionJun 6, 2023May 24, 2001

INCM vs VTI Performance

Franklin Income Focus ETF (INCM) is a ETF from Franklin Templeton Investments (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year INCM returned +14.51% while VTI returned +24.07%. Year to date, INCM is up 7.96% versus a gain of 13.92% for VTI.

Over three years, INCM compounded at +11.36% per year against +20.88% for VTI. Across the full 3-year window we track, INCM has the edge at +10.98% annualized vs +8.13%. 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 7.2% for INCM. 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 -7.8% for INCM 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

INCM charges 0.38% per year while VTI charges 0.03%. On a $10,000 position that is $38 vs $3 annually, a gap of $35 per year that compounds over a long holding period. On income, INCM currently yields 5.04% against 1.07% for VTI.

Holdings Overlap

8.5%overlap

INCM and VTI share 46 holdings out of 2995 unique holdings combined, representing a 8.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in INCMWeight in VTIDifference
MSFT0.16%3.81%3.65%
AMZN0.16%3.17%3.01%
PG1.86%0.47%1.39%
XOMProProPro
VZProProPro
CVXProProPro
PEPProProPro
DUKProProPro
KOProProPro
DTEProProPro
See all 10 holdings INCM shares with VTI
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, INCM or VTI?

INCM has an expense ratio of 0.38% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $35 per year of difference.

Which performed better, INCM or VTI?

Over the past year INCM returned +14.51% vs +24.07% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), INCM annualized +10.98% vs +8.13% for VTI. Past performance does not guarantee future results.

Which is riskier, INCM or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 7.2% for INCM. Worst drawdown: INCM -7.8% vs VTI -56.6%.

Should I hold both INCM and VTI?

INCM and VTI have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between INCM and VTI?

INCM and VTI share 46 common holdings with a 8.5% weight overlap. Combined, they hold 2995 unique securities.

Which pays a higher dividend, INCM or VTI?

INCM yields 5.04% while VTI yields 1.07%, so INCM currently pays the higher dividend yield.

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