VSDB vs VTI
VSDB vs VTI
Vanguard Short Duration 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 | VSDB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $896M | $663.5B | |
| Dividend Yield | 4.16% | 1.07% | |
| Holdings | 833 | 3,543 | |
| YTD Return | -0.73% | +14.20% | |
| 1Y Return | +1.69% | +24.16% | |
| 3Y Return (annualized) | - | +21.12% | |
| 5Y Return (annualized) | - | +12.37% | |
| Volatility (annualized) | 2.0% | 15.3% | |
| Max Drawdown | -1.8% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 1, 2025 | May 24, 2001 |
VSDB vs VTI Performance
Vanguard Short Duration Bond ETF (VSDB) is a ETF from Vanguard (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VSDB returned +1.69% while VTI returned +24.16%. Year to date, VSDB is down 0.73% versus a gain of 14.20% 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 VSDB. 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 VSDB 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VSDB 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, VSDB currently yields 4.16% against 1.07% for VTI.
Holdings Overlap
VSDB and VTI share 0 holdings out of 2857 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, VSDB or VTI?
VSDB 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, VSDB or VTI?
Over the past year VSDB returned +1.69% vs +24.16% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (1 years), VSDB annualized +3.80% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, VSDB or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 2.0% for VSDB. Worst drawdown: VSDB -1.8% vs VTI -56.6%.
Should I hold both VSDB and VTI?
VSDB and VTI have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VSDB and VTI?
VSDB and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2857 unique securities.
Which pays a higher dividend, VSDB or VTI?
VSDB yields 4.16% while VTI yields 1.07%, so VSDB currently pays the higher dividend yield.
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