RAVI 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

MetricRAVIVTIWinner
Expense Ratio0.25%0.03%
AUM$1.5B$663.5B
Dividend Yield4.37%1.07%
Holdings2543,543
YTD Return+1.87%+13.57%
1Y Return+3.84%+24.23%
3Y Return (annualized)+4.98%+20.73%
5Y Return (annualized)+3.56%+12.24%
Volatility (annualized)1.2%15.3%
Max Drawdown-3.8%-56.6%
Fund FamilyFlexshares TrustVanguard (US)
CategoryFixed IncomeEquity
InceptionOct 9, 2012May 24, 2001

RAVI vs VTI Performance

FlexShares Ultra Short Income Fund (RAVI) is a ETF from Flexshares Trust and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year RAVI returned +3.84% while VTI returned +24.23%. Year to date, RAVI is up 1.87% versus a gain of 13.57% for VTI.

Over three years, RAVI compounded at +4.98% per year against +20.73% for VTI; over five years the annualized figures are +3.56% and +12.24% respectively. Across the full 14-year window we track, VTI has the edge at +8.12% annualized vs +1.40%. 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 1.2% for RAVI. 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 -3.8% for RAVI 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

RAVI charges 0.25% per year while VTI charges 0.03%. On a $10,000 position that is $25 vs $3 annually, a gap of $22 per year that compounds over a long holding period. On income, RAVI currently yields 4.37% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

RAVI and VTI share 0 holdings out of 2978 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, RAVI or VTI?

RAVI has an expense ratio of 0.25% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $22 per year of difference.

Which performed better, RAVI or VTI?

Over the past year RAVI returned +3.84% vs +24.23% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (14 years), RAVI annualized +1.40% vs +8.12% for VTI. Past performance does not guarantee future results.

Which is riskier, RAVI or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 1.2% for RAVI. Worst drawdown: RAVI -3.8% vs VTI -56.6%.

Should I hold both RAVI and VTI?

RAVI and VTI have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between RAVI and VTI?

RAVI and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2978 unique securities.

Which pays a higher dividend, RAVI or VTI?

RAVI yields 4.37% while VTI yields 1.07%, so RAVI currently pays the higher dividend yield.

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