TLTE vs. VTI

Last updated Aug 2, 2026

TLTE (FlexShares Morningstar Emerging Markets Factor Tilt Index) and VTI (Vanguard Total Stock Market ETF) are both exchange-traded funds - TLTE is a Emerging Markets Equities fund tracking the Morningstar Emerging Markets Factor Tilt Index, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. Both are passively managed. Over the past 10 years, TLTE returned 8.02%/yr vs 14.63%/yr for VTI. Their 0.68 correlation means they have sometimes moved together and sometimes differently. TLTE charges 0.59%/yr vs 0.03%/yr for VTI.

Performance

TLTE vs. VTI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) and Vanguard Total Stock Market ETF (VTI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TLTE achieves a 14.67% return, which is significantly higher than VTI's 10.49% return. Over the past 10 years, TLTE has underperformed VTI with an annualized return of 8.02%, while VTI has yielded a comparatively higher 14.63% annualized return.

TLTE

• 1D: -0.54%
• 1M: -2.30%
• 6M: 5.33%
• YTD: 14.67%
• 1Y: 29.30%
• 3Y*: 16.74%
• 5Y*: 7.39%
• 10Y*: 8.02%
• ALL TIME*: 5.45%

VTI

• 1D: 0.53%
• 1M: -0.15%
• 6M: 8.77%
• YTD: 10.49%
• 1Y: 21.84%
• 3Y*: 18.92%
• 5Y*: 11.74%
• 10Y*: 14.63%
• ALL TIME*: 9.58%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	$324.29K	$288.00K	$344.90K
VTI Vanguard Total Stock Market ETF	$1.06B	$1.16B	$1.24B

TLTE vs. VTI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	14.67%	30.21%	3.53%	13.62%	-17.31%	4.79%	12.10%	14.51%	-17.44%	32.82%
VTI Vanguard Total Stock Market ETF	10.49%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.23%	21.21%

Correlation

The correlation between TLTE and VTI is 0.77, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.77
Correlation (3Y) Balances recent behavior with more history.	0.67
Correlation (5Y) Shows whether the relationship held over a longer period.	0.67
Correlation (10Y) Provides a long-term view across more market conditions.	0.68
Correlation (All Time) Calculated using the full available price history since Oct 2, 2012	0.68

The correlation between TLTE and VTI has been stable across timeframes, ranging from 0.67 to 0.77 - a consistent structural relationship.

TLTE vs. VTI - Sectors Allocation Comparison

Sectors	TLTE	VTI
Technology	34.6%	36.1%
Financial Services	18.7%	11.8%
Industrials	10.1%	10.2%
Consumer Cyclical	9.9%	9.4%
Basic Materials	7.0%	1.9%
Communication Services	4.2%	9.1%
Real Estate	3.8%	2.3%
Consumer Defensive	3.6%	4.3%
Energy	3.1%	3.2%
Healthcare	2.6%	9.7%
Utilities	2.4%	2.2%

Return for Risk

TLTE vs. VTI — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

TLTE

TLTE Risk / Return Rank: 56
TLTE Sharpe Ratio Rank: 52
TLTE Sortino Ratio Rank: 50
TLTE Omega Ratio Rank: 57
TLTE Calmar Ratio Rank: 63
TLTE Martin Ratio Rank: 57

VTI

VTI Risk / Return Rank: 67
VTI Sharpe Ratio Rank: 67
VTI Sortino Ratio Rank: 64
VTI Omega Ratio Rank: 64
VTI Calmar Ratio Rank: 65
VTI Martin Ratio Rank: 77

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

TLTE vs. VTI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) and Vanguard Total Stock Market ETF (VTI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	TLTE	VTI	Difference
Sharpe ratio: Return per unit of total volatility	1.27	1.52	-0.25
Sortino ratio: Return per unit of downside risk	1.79	2.12	-0.33
Omega ratio: Gain probability vs. loss probability	1.25	1.27	-0.02
Calmar ratio: Return relative to maximum drawdown	2.20	2.23	-0.03
Martin ratio: Return relative to average drawdown	6.73	9.62	-2.89

TLTE vs. VTI - Sharpe Ratio Comparison

The current TLTE Sharpe Ratio is 1.27, which is comparable to the VTI Sharpe Ratio of 1.52. The chart below compares the historical Sharpe Ratios of TLTE and VTI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

TLTE vs. VTI - Drawdown Comparison

The maximum TLTE drawdown since its inception was -44.21%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for TLTE and VTI.

Drawdown Indicators

	TLTE	VTI	Difference
Max Drawdown Largest peak-to-trough decline	-44.21%	-55.45%	+11.24%
Max Drawdown (1Y) Largest decline over 1 year	-13.04%	-8.92%	-4.12%
Max Drawdown (3Y) Largest decline over 3 years	-17.43%	-19.30%	+1.87%
Max Drawdown (5Y) Largest decline over 5 years	-30.97%	-25.36%	-5.61%
Max Drawdown (10Y) Largest decline over 10 years	-44.21%	-35.00%	-9.21%
Current Drawdown Current decline from peak	-9.37%	-1.36%	-8.01%
Average Drawdown Average peak-to-trough decline	-12.08%	-7.99%	-4.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.25%	2.07%	+2.18%

Volatility

TLTE vs. VTI - Volatility Comparison

FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) has a higher volatility of 8.33% compared to Vanguard Total Stock Market ETF (VTI) at 3.46%. This indicates that TLTE's price experiences larger fluctuations and is considered to be riskier than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TLTE	VTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.33%	3.46%	+4.87%
Volatility (6M) Calculated over the trailing 6-month period	20.77%	10.24%	+10.53%
Volatility (1Y) Calculated over the trailing 1-year period	22.51%	13.10%	+9.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.75%	17.51%	+0.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.72%	18.30%	+0.42%

TLTE vs. VTI - Expense Ratio Comparison

TLTE has a 0.59% expense ratio, which is higher than VTI's 0.03% expense ratio.

Dividends

TLTE vs. VTI - Dividend Comparison

TLTE's dividend yield for the trailing twelve months is around 3.41%, more than VTI's 1.06% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	3.41%	3.76%	3.73%	4.03%	4.42%	3.21%	1.95%	3.23%	3.02%	2.12%	2.30%	2.00%
VTI Vanguard Total Stock Market ETF	1.06%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both TLTE and VTI in my portfolio?

TLTE and VTI have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TLTE or VTI?

TLTE has higher volatility (8.33%) compared to VTI (3.46%). In terms of maximum drawdown, TLTE dropped -44.21% vs VTI's -55.45%.

Which ETF is better, TLTE or VTI?

On 10-year performance, VTI leads with 14.63% vs 8.02% for TLTE. On fees, VTI is cheaper at 0.03% per year. On volatility, VTI has been the lower-risk option at 3.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TLTE or VTI?

Over the 10-year period, VTI has performed better with a 14.63% return vs 8.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TLTE or VTI?

VTI is cheaper with a 0.03% expense ratio, compared with 0.59% for TLTE.

Which ETF pays a higher dividend yield, TLTE or VTI?

TLTE has the higher dividend yield at 3.41%, compared with 1.06% for VTI.

What is the main difference between TLTE and VTI?

TLTE is categorized as Emerging Markets Equities, while VTI is Large Cap Blend Equities. TLTE tracks Morningstar Emerging Markets Factor Tilt Index, while VTI tracks CRSP US Total Market Index. They also come from different issuers: Northern Trust and Vanguard. Their fees differ too: 0.59% for TLTE and 0.03% for VTI.

Which has better risk-adjusted returns?

VTI currently has the higher Sharpe Ratio (1.52 vs 1.27), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.