LALT 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

MetricLALTVTIWinner
Expense Ratio1.18%0.03%
AUM$294M$663.5B
Dividend Yield3.68%1.07%
Holdings93,543
YTD Return+8.42%+14.20%
1Y Return+15.74%+24.16%
3Y Return (annualized)+9.51%+21.12%
5Y Return (annualized)-+12.37%
Volatility (annualized)4.7%15.3%
Max Drawdown-7.0%-56.6%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryAlternativeEquity
InceptionJan 31, 2023May 24, 2001

LALT vs VTI Performance

First Trust Multi-Strategy Alternative ETF (LALT) is a ETF from First Trust Portfolios (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year LALT returned +15.74% while VTI returned +24.16%. Year to date, LALT is up 8.42% versus a gain of 14.20% for VTI.

Over three years, LALT compounded at +9.51% per year against +21.12% for VTI. Across the full 4-year window we track, LALT has the edge at +8.22% annualized vs +8.14%. 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 4.7% for LALT. 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 -7.0% for LALT 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

LALT charges 1.18% per year while VTI charges 0.03%. On a $10,000 position that is $118 vs $3 annually, a gap of $115 per year that compounds over a long holding period. On income, LALT currently yields 3.68% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

LALT and VTI share 0 holdings out of 2790 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, LALT or VTI?

LALT has an expense ratio of 1.18% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $115 per year of difference.

Which performed better, LALT or VTI?

Over the past year LALT returned +15.74% vs +24.16% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (4 years), LALT annualized +8.22% vs +8.14% for VTI. Past performance does not guarantee future results.

Which is riskier, LALT or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 4.7% for LALT. Worst drawdown: LALT -7.0% vs VTI -56.6%.

Should I hold both LALT and VTI?

LALT and VTI have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between LALT and VTI?

LALT and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2790 unique securities.

Which pays a higher dividend, LALT or VTI?

LALT yields 3.68% while VTI yields 1.07%, so LALT currently pays the higher dividend yield.

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