VTI vs XBB

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

MetricVTIXBBWinner
Expense Ratio0.03%0.20%
AUM$663.5B$531M
Dividend Yield1.07%5.57%
Holdings3,5431,081
YTD Return+10.14%+1.22%
1Y Return+19.82%+4.77%
3Y Return (annualized)+18.94%+7.40%
5Y Return (annualized)+11.79%-
Volatility (annualized)15.4%7.4%
Max Drawdown-56.6%-8.9%
Fund FamilyVanguard (US)BondBloxx
CategoryEquityFixed Income
InceptionMay 24, 2001May 24, 2022

VTI vs XBB Performance

Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and BondBloxx BB Rated USD High Yield Corporate Bond ETF (XBB) is a ETF from BondBloxx. Over the past year VTI returned +19.82% while XBB returned +4.77%. Year to date, VTI is up 10.14% versus a gain of 1.22% for XBB.

Over three years, VTI compounded at +18.94% per year against +7.40% for XBB. Across the full 4-year window we track, VTI has the edge at +7.99% annualized vs +5.43%. 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 7.4% for XBB. 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 -8.9% for XBB. 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 0.82. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VTI charges 0.03% per year while XBB charges 0.20%. On a $10,000 position that is $3 vs $20 annually, a gap of $17 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 5.57% for XBB.

Holdings Overlap

0.0%overlap

VTI and XBB share 1 holdings out of 3572 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VTIWeight in XBBDifference
THC0.02%0.25%0.23%

Frequently Asked Questions

Which is cheaper, VTI or XBB?

VTI has an expense ratio of 0.03% while XBB charges 0.20%. VTI is the cheaper option. On a $10,000 investment, that is $17 per year of difference.

Which performed better, VTI or XBB?

Over the past year VTI returned +19.82% vs +4.77% for XBB, so VTI leads on 1-year performance. Over the longest common window we track (4 years), VTI annualized +7.99% vs +5.43% for XBB. Past performance does not guarantee future results.

Which is riskier, VTI or XBB?

VTI has been the more volatile fund at 15.4% annualized versus 7.4% for XBB. Worst drawdown: VTI -56.6% vs XBB -8.9%.

Should I hold both VTI and XBB?

VTI and XBB have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VTI and XBB?

VTI and XBB share 1 common holdings with a 0.0% weight overlap. Combined, they hold 3572 unique securities.

Which pays a higher dividend, VTI or XBB?

VTI yields 1.07% while XBB yields 5.57%, so XBB currently pays the higher dividend yield.

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