TBUX 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

MetricTBUXVTIWinner
Expense Ratio0.17%0.03%
AUM$1.3B$663.5B
Dividend Yield4.49%1.07%
Holdings6223,543
YTD Return+2.36%+11.83%
1Y Return+4.45%+21.79%
3Y Return (annualized)+5.54%+20.40%
5Y Return (annualized)-+11.96%
Volatility (annualized)1.1%15.3%
Max Drawdown-1.8%-56.6%
Fund FamilyT.Rowe PriceVanguard (US)
CategoryFixed IncomeEquity
InceptionSep 28, 2021May 24, 2001

TBUX vs VTI Performance

T Rowe Price Ultra Short-Term Bond ETF (TBUX) is a ETF from T.Rowe Price and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year TBUX returned +4.45% while VTI returned +21.79%. Year to date, TBUX is up 2.36% versus a gain of 11.83% for VTI.

Over three years, TBUX compounded at +5.54% per year against +20.40% for VTI. Across the full 5-year window we track, VTI has the edge at +8.06% annualized vs +4.03%. 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 1.1% for TBUX. 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 -1.8% for TBUX 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TBUX charges 0.17% per year while VTI charges 0.03%. On a $10,000 position that is $17 vs $3 annually, a gap of $14 per year that compounds over a long holding period. On income, TBUX currently yields 4.49% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

TBUX and VTI share 0 holdings out of 3145 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, TBUX or VTI?

TBUX has an expense ratio of 0.17% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $14 per year of difference.

Which performed better, TBUX or VTI?

Over the past year TBUX returned +4.45% vs +21.79% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (5 years), TBUX annualized +4.03% vs +8.06% for VTI. Past performance does not guarantee future results.

Which is riskier, TBUX or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 1.1% for TBUX. Worst drawdown: TBUX -1.8% vs VTI -56.6%.

Should I hold both TBUX and VTI?

TBUX and VTI have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TBUX and VTI?

TBUX and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3145 unique securities.

Which pays a higher dividend, TBUX or VTI?

TBUX yields 4.49% while VTI yields 1.07%, so TBUX currently pays the higher dividend yield.

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