TMB vs VTI
TMB vs VTI
Thornburg Multi Sector 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 | TMB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.03% | |
| AUM | $238M | $663.5B | |
| Dividend Yield | 4.60% | 1.07% | |
| Holdings | 403 | 3,543 | |
| YTD Return | +0.98% | +13.39% | |
| 1Y Return | +3.08% | +23.21% | |
| 3Y Return (annualized) | - | +20.65% | |
| 5Y Return (annualized) | - | +12.18% | |
| Volatility (annualized) | 2.0% | 15.3% | |
| Max Drawdown | -2.0% | -56.6% | |
| Fund Family | Thornburg Investment Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 5, 2025 | May 24, 2001 |
TMB vs VTI Performance
Thornburg Multi Sector Bond ETF (TMB) is a ETF from Thornburg Investment Management and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year TMB returned +3.08% while VTI returned +23.21%. Year to date, TMB is up 0.98% versus a gain of 13.39% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.0% for TMB. 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 -2.0% for TMB 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TMB charges 0.55% per year while VTI charges 0.03%. On a $10,000 position that is $55 vs $3 annually, a gap of $52 per year that compounds over a long holding period. On income, TMB currently yields 4.60% against 1.07% for VTI.
Holdings Overlap
TMB and VTI share 1 holdings out of 3037 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 TMB | Weight in VTI | Difference |
|---|---|---|---|
| THC | 0.19% | 0.02% | 0.17% |
Frequently Asked Questions
Which is cheaper, TMB or VTI?
TMB has an expense ratio of 0.55% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, TMB or VTI?
Over the past year TMB returned +3.08% vs +23.21% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (2 years), TMB annualized +5.07% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, TMB or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 2.0% for TMB. Worst drawdown: TMB -2.0% vs VTI -56.6%.
Should I hold both TMB and VTI?
TMB and VTI have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TMB and VTI?
TMB and VTI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 3037 unique securities.
Which pays a higher dividend, TMB or VTI?
TMB yields 4.60% while VTI yields 1.07%, so TMB currently pays the higher dividend yield.
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