VTI vs VUSB

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricVTIVUSBWinner
Expense Ratio0.03%0.10%
AUM$663.5B$8.9B
Dividend Yield1.07%4.38%
Holdings3,5431,262
YTD Return+14.20%-0.38%
1Y Return+24.16%+1.64%
3Y Return (annualized)+21.12%+4.40%
5Y Return (annualized)+12.37%+3.06%
Volatility (annualized)15.3%1.2%
Max Drawdown-56.6%-1.8%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityFixed Income
InceptionMay 24, 2001Apr 5, 2021

VTI vs VUSB Performance

Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and Vanguard Ultra Short Bond ETF (VUSB) is a ETF from Vanguard (US). Over the past year VTI returned +24.16% while VUSB returned +1.64%. Year to date, VTI is up 14.20% versus a loss of 0.38% for VUSB.

Over three years, VTI compounded at +21.12% per year against +4.40% for VUSB; over five years the annualized figures are +12.37% and +3.06% respectively. Across the full 5-year window we track, VTI has the edge at +8.14% annualized vs +2.89%. 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 1.2% for VUSB. 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 -56.6% for VTI and -1.8% for VUSB. 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VTI charges 0.03% per year while VUSB charges 0.10%. On a $10,000 position that is $3 vs $10 annually, a gap of $7 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 4.38% for VUSB.

Holdings Overlap

0.0%overlap

VTI and VUSB share 0 holdings out of 2936 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, VTI or VUSB?

VTI has an expense ratio of 0.03% while VUSB charges 0.10%. VTI is the cheaper option. On a $10,000 investment, that is $7 per year of difference.

Which performed better, VTI or VUSB?

Over the past year VTI returned +24.16% vs +1.64% for VUSB, so VTI leads on 1-year performance. Over the longest common window we track (5 years), VTI annualized +8.14% vs +2.89% for VUSB. Past performance does not guarantee future results.

Which is riskier, VTI or VUSB?

VTI has been the more volatile fund at 15.3% annualized versus 1.2% for VUSB. Worst drawdown: VTI -56.6% vs VUSB -1.8%.

Should I hold both VTI and VUSB?

VTI and VUSB have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VTI and VUSB?

VTI and VUSB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2936 unique securities.

Which pays a higher dividend, VTI or VUSB?

VTI yields 1.07% while VUSB yields 4.38%, so VUSB currently pays the higher dividend yield.

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