SHM vs VTI
SHM vs VTI
State Street SPDR Nuveen ICE Short Term Municipal 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 | SHM | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.03% | |
| AUM | $3.5B | $663.5B | |
| Dividend Yield | 2.66% | 1.07% | |
| Holdings | 988 | 3,543 | |
| YTD Return | +0.62% | +13.39% | |
| 1Y Return | +1.62% | +23.21% | |
| 3Y Return (annualized) | +2.78% | +20.65% | |
| 5Y Return (annualized) | +0.79% | +12.18% | |
| Volatility (annualized) | 2.6% | 15.3% | |
| Max Drawdown | -11.6% | -56.6% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Oct 10, 2007 | May 24, 2001 |
SHM vs VTI Performance
State Street SPDR Nuveen ICE Short Term Municipal Bond ETF (SHM) is a ETF from State Street Investment Management and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year SHM returned +1.62% while VTI returned +23.21%. Year to date, SHM is up 0.62% versus a gain of 13.39% for VTI.
Over three years, SHM compounded at +2.78% per year against +20.65% for VTI; over five years the annualized figures are +0.79% and +12.18% respectively. Across the full 19-year window we track, VTI has the edge at +8.11% annualized vs +0.76%. 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 2.6% for SHM. 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 -11.6% for SHM 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SHM charges 0.20% per year while VTI charges 0.03%. On a $10,000 position that is $20 vs $3 annually, a gap of $17 per year that compounds over a long holding period. On income, SHM currently yields 2.66% against 1.07% for VTI.
Holdings Overlap
SHM and VTI share 1 holdings out of 3453 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SHM | Weight in VTI | Difference |
|---|---|---|---|
| THC | 0.05% | 0.02% | 0.03% |
Frequently Asked Questions
Which is cheaper, SHM or VTI?
SHM has an expense ratio of 0.20% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, SHM or VTI?
Over the past year SHM returned +1.62% vs +23.21% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), SHM annualized +0.76% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, SHM or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 2.6% for SHM. Worst drawdown: SHM -11.6% vs VTI -56.6%.
Should I hold both SHM and VTI?
SHM and VTI have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SHM and VTI?
SHM and VTI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 3453 unique securities.
Which pays a higher dividend, SHM or VTI?
SHM yields 2.66% while VTI yields 1.07%, so SHM currently pays the higher dividend yield.
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