LMBS 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

MetricLMBSVTIWinner
Expense Ratio0.65%0.03%
AUM$6.4B$663.5B
Dividend Yield4.10%1.07%
Holdings1,2133,543
YTD Return+1.47%+10.14%
1Y Return+4.49%+19.82%
3Y Return (annualized)+5.63%+18.94%
5Y Return (annualized)+2.99%+11.79%
Volatility (annualized)2.2%15.4%
Max Drawdown-8.5%-56.6%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionNov 4, 2014May 24, 2001

LMBS vs VTI Performance

First Trust Low Duration Opportunities ETF (LMBS) 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 LMBS returned +4.49% while VTI returned +19.82%. Year to date, LMBS is up 1.47% versus a gain of 10.14% for VTI.

Over three years, LMBS compounded at +5.63% per year against +18.94% for VTI; over five years the annualized figures are +2.99% and +11.79% respectively. Across the full 12-year window we track, VTI has the edge at +7.99% annualized vs +1.49%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 2.2% for LMBS. 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 -8.5% for LMBS 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

LMBS charges 0.65% per year while VTI charges 0.03%. On a $10,000 position that is $65 vs $3 annually, a gap of $62 per year that compounds over a long holding period. On income, LMBS currently yields 4.10% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

LMBS and VTI share 0 holdings out of 3547 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, LMBS or VTI?

LMBS has an expense ratio of 0.65% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $62 per year of difference.

Which performed better, LMBS or VTI?

Over the past year LMBS returned +4.49% vs +19.82% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (12 years), LMBS annualized +1.49% vs +7.99% for VTI. Past performance does not guarantee future results.

Which is riskier, LMBS or VTI?

VTI has been the more volatile fund at 15.4% annualized versus 2.2% for LMBS. Worst drawdown: LMBS -8.5% vs VTI -56.6%.

Should I hold both LMBS and VTI?

LMBS and VTI have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between LMBS and VTI?

LMBS and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3547 unique securities.

Which pays a higher dividend, LMBS or VTI?

LMBS yields 4.10% while VTI yields 1.07%, so LMBS currently pays the higher dividend yield.

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