VTI vs WDI
VTI vs WDI
Vanguard Total Stock Market ETF vs Western Asset Diversified Income Fund
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 | VTI | WDI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 1.82% | |
| AUM | $663.5B | $723M | |
| Dividend Yield | 1.07% | 12.55% | |
| Holdings | 3,543 | 410 | |
| YTD Return | +10.14% | +2.12% | |
| 1Y Return | +19.82% | -0.29% | |
| 3Y Return (annualized) | +18.94% | +11.37% | |
| 5Y Return (annualized) | +11.79% | +2.93% | |
| Volatility (annualized) | 15.4% | 14.0% | |
| Max Drawdown | -56.6% | -32.5% | |
| Fund Family | Vanguard (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | May 24, 2001 | Jun 24, 2021 |
VTI vs WDI Performance
Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and Western Asset Diversified Income Fund (WDI) is a ETF from Franklin Templeton Investments (US). Over the past year VTI returned +19.82% while WDI returned -0.29%. Year to date, VTI is up 10.14% versus a gain of 2.12% for WDI.
Over three years, VTI compounded at +18.94% per year against +11.37% for WDI; over five years the annualized figures are +11.79% and +2.93% respectively. Across the full 5-year window we track, VTI has the edge at +7.99% annualized vs +2.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 14.0% for WDI. 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 -32.5% for WDI. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTI charges 0.03% per year while WDI charges 1.82%. On a $10,000 position that is $3 vs $182 annually, a gap of $179 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 12.55% for WDI.
Holdings Overlap
VTI and WDI share 1 holdings out of 2974 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 VTI | Weight in WDI | Difference |
|---|---|---|---|
| WW | 0.00% | 0.08% | 0.08% |
Frequently Asked Questions
Which is cheaper, VTI or WDI?
VTI has an expense ratio of 0.03% while WDI charges 1.82%. VTI is the cheaper option. On a $10,000 investment, that is $179 per year of difference.
Which performed better, VTI or WDI?
Over the past year VTI returned +19.82% vs -0.29% for WDI, so VTI leads on 1-year performance. Over the longest common window we track (5 years), VTI annualized +7.99% vs +2.87% for WDI. Past performance does not guarantee future results.
Which is riskier, VTI or WDI?
VTI has been the more volatile fund at 15.4% annualized versus 14.0% for WDI. Worst drawdown: VTI -56.6% vs WDI -32.5%.
Should I hold both VTI and WDI?
VTI and WDI have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTI and WDI?
VTI and WDI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2974 unique securities.
Which pays a higher dividend, VTI or WDI?
VTI yields 1.07% while WDI yields 12.55%, so WDI currently pays the higher dividend yield.
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