VGMS vs VTI
VGMS vs VTI
Vanguard Multi-Sector Income 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 | VGMS | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.03% | |
| AUM | $235M | $663.5B | |
| Dividend Yield | 5.14% | 1.07% | |
| Holdings | 927 | 3,543 | |
| YTD Return | -1.54% | +10.14% | |
| 1Y Return | +2.46% | +19.82% | |
| 3Y Return (annualized) | - | +18.94% | |
| 5Y Return (annualized) | - | +11.79% | |
| Volatility (annualized) | 2.9% | 15.4% | |
| Max Drawdown | -2.9% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 9, 2025 | May 24, 2001 |
VGMS vs VTI Performance
Vanguard Multi-Sector Income Bond ETF (VGMS) is a ETF from Vanguard (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VGMS returned +2.46% while VTI returned +19.82%. Year to date, VGMS is down 1.54% versus a gain of 10.14% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 2.9% for VGMS. 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 -2.9% for VGMS 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGMS charges 0.30% per year while VTI charges 0.03%. On a $10,000 position that is $30 vs $3 annually, a gap of $27 per year that compounds over a long holding period. On income, VGMS currently yields 5.14% against 1.07% for VTI.
Holdings Overlap
VGMS and VTI share 1 holdings out of 3316 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 VGMS | Weight in VTI | Difference |
|---|---|---|---|
| THC | 0.14% | 0.02% | 0.12% |
Frequently Asked Questions
Which is cheaper, VGMS or VTI?
VGMS has an expense ratio of 0.30% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, VGMS or VTI?
Over the past year VGMS returned +2.46% vs +19.82% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (1 years), VGMS annualized +3.65% vs +7.99% for VTI. Past performance does not guarantee future results.
Which is riskier, VGMS or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 2.9% for VGMS. Worst drawdown: VGMS -2.9% vs VTI -56.6%.
Should I hold both VGMS and VTI?
VGMS and VTI have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGMS and VTI?
VGMS and VTI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 3316 unique securities.
Which pays a higher dividend, VGMS or VTI?
VGMS yields 5.14% while VTI yields 1.07%, so VGMS currently pays the higher dividend yield.
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