VSHY vs VTI
VSHY vs VTI
Virtus Newfleet Short Duration High Yield 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 | VSHY | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $31M | $663.5B | |
| Dividend Yield | 6.39% | 1.07% | |
| Holdings | 171 | 3,543 | |
| YTD Return | +2.85% | +13.39% | |
| 1Y Return | +5.47% | +23.21% | |
| 3Y Return (annualized) | +7.92% | +20.65% | |
| 5Y Return (annualized) | +4.08% | +12.18% | |
| Volatility (annualized) | 6.2% | 15.3% | |
| Max Drawdown | -18.6% | -56.6% | |
| Fund Family | Virtus Investment Partners | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 5, 2016 | May 24, 2001 |
VSHY vs VTI Performance
Virtus Newfleet Short Duration High Yield Bond ETF (VSHY) is a ETF from Virtus Investment Partners and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VSHY returned +5.47% while VTI returned +23.21%. Year to date, VSHY is up 2.85% versus a gain of 13.39% for VTI.
Over three years, VSHY compounded at +7.92% per year against +20.65% for VTI; over five years the annualized figures are +4.08% and +12.18% respectively. Across the full 10-year window we track, VTI has the edge at +8.11% annualized vs +2.17%. 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 6.2% for VSHY. 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 -18.6% for VSHY 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VSHY charges 0.39% per year while VTI charges 0.03%. On a $10,000 position that is $39 vs $3 annually, a gap of $36 per year that compounds over a long holding period. On income, VSHY currently yields 6.39% against 1.07% for VTI.
Holdings Overlap
VSHY and VTI share 0 holdings out of 2784 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, VSHY or VTI?
VSHY has an expense ratio of 0.39% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, VSHY or VTI?
Over the past year VSHY returned +5.47% vs +23.21% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (10 years), VSHY annualized +2.17% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, VSHY or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 6.2% for VSHY. Worst drawdown: VSHY -18.6% vs VTI -56.6%.
Should I hold both VSHY and VTI?
VSHY and VTI have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VSHY and VTI?
VSHY and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2784 unique securities.
Which pays a higher dividend, VSHY or VTI?
VSHY yields 6.39% while VTI yields 1.07%, so VSHY currently pays the higher dividend yield.
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