VBND vs VTI
VBND vs VTI
Vident US Bond Strategy 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 | VBND | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.41% | 0.03% | |
| AUM | $525M | $663.5B | |
| Dividend Yield | 4.25% | 1.07% | |
| Holdings | 192 | 3,543 | |
| YTD Return | -0.02% | +11.83% | |
| 1Y Return | +2.30% | +21.79% | |
| 3Y Return (annualized) | +4.48% | +20.40% | |
| 5Y Return (annualized) | -0.24% | +11.96% | |
| Volatility (annualized) | 5.3% | 15.3% | |
| Max Drawdown | -19.0% | -56.6% | |
| Fund Family | Vident Financial | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 15, 2014 | May 24, 2001 |
VBND vs VTI Performance
Vident US Bond Strategy ETF (VBND) is a ETF from Vident Financial and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VBND returned +2.30% while VTI returned +21.79%. Year to date, VBND is down 0.02% versus a gain of 11.83% for VTI.
Over three years, VBND compounded at +4.48% per year against +20.40% for VTI; over five years the annualized figures are -0.24% and +11.96% respectively. Across the full 12-year window we track, VTI has the edge at +8.06% annualized vs +0.31%. 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 5.3% for VBND. 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 -19.0% for VBND 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VBND charges 0.41% per year while VTI charges 0.03%. On a $10,000 position that is $41 vs $3 annually, a gap of $38 per year that compounds over a long holding period. On income, VBND currently yields 4.25% against 1.07% for VTI.
Holdings Overlap
VBND and VTI share 0 holdings out of 2935 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, VBND or VTI?
VBND has an expense ratio of 0.41% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, VBND or VTI?
Over the past year VBND returned +2.30% vs +21.79% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (12 years), VBND annualized +0.31% vs +8.06% for VTI. Past performance does not guarantee future results.
Which is riskier, VBND or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 5.3% for VBND. Worst drawdown: VBND -19.0% vs VTI -56.6%.
Should I hold both VBND and VTI?
VBND and VTI have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBND and VTI?
VBND and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2935 unique securities.
Which pays a higher dividend, VBND or VTI?
VBND yields 4.25% while VTI yields 1.07%, so VBND currently pays the higher dividend yield.
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