TLT vs VTI
TLT vs VTI
iShares 20+ Year Treasury 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 | TLT | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $43.0B | $663.5B | |
| Dividend Yield | 4.53% | 1.07% | |
| Holdings | 48 | 3,543 | |
| YTD Return | -3.35% | +10.14% | |
| 1Y Return | -1.06% | +19.82% | |
| 3Y Return (annualized) | -1.44% | +18.94% | |
| 5Y Return (annualized) | -8.15% | +11.79% | |
| Volatility (annualized) | 13.4% | 15.4% | |
| Max Drawdown | -48.7% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 22, 2002 | May 24, 2001 |
TLT vs VTI Performance
iShares 20+ Year Treasury Bond ETF (TLT) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year TLT returned -1.06% while VTI returned +19.82%. Year to date, TLT is down 3.35% versus a gain of 10.14% for VTI.
Over three years, TLT compounded at -1.44% per year against +18.94% for VTI; over five years the annualized figures are -8.15% and +11.79% respectively. Across the full 24-year window we track, VTI has the edge at +7.99% annualized vs +0.79%. 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 13.4% for TLT. 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 -48.7% for TLT 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 -0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TLT charges 0.15% per year while VTI charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, TLT currently yields 4.53% against 1.07% for VTI.
Holdings Overlap
TLT and VTI share 0 holdings out of 2827 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, TLT or VTI?
TLT has an expense ratio of 0.15% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, TLT or VTI?
Over the past year TLT returned -1.06% vs +19.82% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (24 years), TLT annualized +0.79% vs +7.99% for VTI. Past performance does not guarantee future results.
Which is riskier, TLT or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 13.4% for TLT. Worst drawdown: TLT -48.7% vs VTI -56.6%.
Should I hold both TLT and VTI?
TLT and VTI have a monthly-return correlation of -0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TLT and VTI?
TLT and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2827 unique securities.
Which pays a higher dividend, TLT or VTI?
TLT yields 4.53% while VTI yields 1.07%, so TLT currently pays the higher dividend yield.
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