TAGG vs VTI
TAGG vs VTI
T Rowe Price QM US 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 | TAGG | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.03% | |
| AUM | $2.3B | $663.5B | |
| Dividend Yield | 4.57% | 1.07% | |
| Holdings | 1,595 | 3,543 | |
| YTD Return | -0.54% | +10.14% | |
| 1Y Return | +2.99% | +19.82% | |
| 3Y Return (annualized) | +4.13% | +18.94% | |
| 5Y Return (annualized) | - | +11.79% | |
| Volatility (annualized) | 6.7% | 15.4% | |
| Max Drawdown | -17.3% | -56.6% | |
| Fund Family | T.Rowe Price | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 28, 2021 | May 24, 2001 |
TAGG vs VTI Performance
T Rowe Price QM US Bond ETF (TAGG) is a ETF from T.Rowe Price and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year TAGG returned +2.99% while VTI returned +19.82%. Year to date, TAGG is down 0.54% versus a gain of 10.14% for VTI.
Over three years, TAGG compounded at +4.13% per year against +18.94% for VTI. Across the full 5-year window we track, VTI has the edge at +7.99% annualized vs +0.01%. 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 6.7% for TAGG. 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 -17.3% for TAGG 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAGG charges 0.08% per year while VTI charges 0.03%. On a $10,000 position that is $8 vs $3 annually, a gap of $5 per year that compounds over a long holding period. On income, TAGG currently yields 4.57% against 1.07% for VTI.
Holdings Overlap
TAGG and VTI share 1 holdings out of 3994 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 TAGG | Weight in VTI | Difference |
|---|---|---|---|
| GE | 0.03% | 0.54% | 0.51% |
Frequently Asked Questions
Which is cheaper, TAGG or VTI?
TAGG has an expense ratio of 0.08% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, TAGG or VTI?
Over the past year TAGG returned +2.99% vs +19.82% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (5 years), TAGG annualized +0.01% vs +7.99% for VTI. Past performance does not guarantee future results.
Which is riskier, TAGG or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 6.7% for TAGG. Worst drawdown: TAGG -17.3% vs VTI -56.6%.
Should I hold both TAGG and VTI?
TAGG and VTI have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TAGG and VTI?
TAGG and VTI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 3994 unique securities.
Which pays a higher dividend, TAGG or VTI?
TAGG yields 4.57% while VTI yields 1.07%, so TAGG currently pays the higher dividend yield.
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