VFMF vs. VTI

Last updated Jun 24, 2026

VFMF (Vanguard U.S. Multifactor ETF) and VTI (Vanguard Total Stock Market ETF) are both exchange-traded funds - VFMF is a Multi-factor fund actively managed by Vanguard, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. VFMF is actively managed, while VTI is passively managed. Over the past 5 years, VFMF returned 14.43%/yr vs 11.90%/yr for VTI. Their correlation of 0.86 suggests significant overlap in exposure. VFMF charges 0.18%/yr vs 0.03%/yr for VTI.

Performance

VFMF vs. VTI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard U.S. Multifactor ETF (VFMF) 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, VFMF achieves a 16.88% return, which is significantly higher than VTI's 8.82% return.

VFMF

• 1D: -0.10%
• 1M: 2.80%
• YTD: 16.88%
• 6M: 15.26%
• 1Y: 34.79%
• 3Y*: 22.47%
• 5Y*: 14.43%
• 10Y*: —

VTI

• 1D: -1.39%
• 1M: -0.84%
• YTD: 8.82%
• 6M: 7.71%
• 1Y: 24.22%
• 3Y*: 20.62%
• 5Y*: 11.90%
• 10Y*: 15.14%

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

VFMF vs. VTI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VFMF Vanguard U.S. Multifactor ETF	16.88%	17.38%	15.60%	18.52%	-5.70%	30.05%	4.99%	22.34%	-10.89%
VTI Vanguard Total Stock Market ETF	8.82%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.99%

Correlation

The correlation between VFMF and VTI is 0.77, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018	0.86

The correlation between VFMF and VTI has been stable across timeframes, ranging from 0.77 to 0.86 - a consistent structural relationship.

VFMF vs. VTI - Sectors Allocation Comparison

Sectors	VFMF	VTI
Financial Services	24.6%	11.3%
Healthcare	16.9%	9.0%
Consumer Cyclical	13.6%	9.7%
Technology	12.7%	37.0%
Industrials	9.0%	9.4%
Energy	7.3%	3.3%
Consumer Defensive	6.8%	4.3%
Communication Services	5.0%	9.8%
Basic Materials	3.4%	1.9%
Real Estate	0.3%	2.3%
Utilities	0.2%	2.1%

Return for Risk

VFMF vs. VTI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VFMF

VFMF Risk / Return Rank: 86
VFMF Sharpe Ratio Rank: 86
VFMF Sortino Ratio Rank: 87
VFMF Omega Ratio Rank: 82
VFMF Calmar Ratio Rank: 88
VFMF Martin Ratio Rank: 88

VTI

VTI Risk / Return Rank: 59
VTI Sharpe Ratio Rank: 58
VTI Sortino Ratio Rank: 56
VTI Omega Ratio Rank: 57
VTI Calmar Ratio Rank: 57
VTI Martin Ratio Rank: 68

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VFMF vs. VTI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Multifactor ETF (VFMF) 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.

	VFMF	VTI	Difference
Sharpe ratio: Return per unit of total volatility	2.65	1.90	+0.75
Sortino ratio: Return per unit of downside risk	3.78	2.59	+1.19
Omega ratio: Gain probability vs. loss probability	1.46	1.34	+0.12
Calmar ratio: Return relative to maximum drawdown	4.94	2.73	+2.21
Martin ratio: Return relative to average drawdown	18.56	12.14	+6.42

VFMF vs. VTI - Sharpe Ratio Comparison

The current VFMF Sharpe Ratio is 2.65, which is higher than the VTI Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of VFMF 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

VFMF vs. VTI - Drawdown Comparison

The maximum VFMF drawdown since its inception was -41.34%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for VFMF and VTI.

Drawdown Indicators

	VFMF	VTI	Difference
Max Drawdown Largest peak-to-trough decline	-41.34%	-55.45%	+14.11%
Max Drawdown (1Y) Largest decline over 1 year	-7.08%	-8.92%	+1.84%
Max Drawdown (3Y) Largest decline over 3 years	-20.57%	-19.30%	-1.27%
Max Drawdown (5Y) Largest decline over 5 years	-20.57%	-25.36%	+4.79%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.00%	—
Current Drawdown Current decline from peak	-0.78%	-2.85%	+2.07%
Average Drawdown Average peak-to-trough decline	-5.71%	-8.01%	+2.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.88%	2.00%	-0.12%

Volatility

VFMF vs. VTI - Volatility Comparison

The current volatility for Vanguard U.S. Multifactor ETF (VFMF) is 3.56%, while Vanguard Total Stock Market ETF (VTI) has a volatility of 4.95%. This indicates that VFMF experiences smaller price fluctuations and is considered to be less risky than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFMF	VTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.56%	4.95%	-1.39%
Volatility (6M) Calculated over the trailing 6-month period	9.31%	10.05%	-0.74%
Volatility (1Y) Calculated over the trailing 1-year period	13.25%	12.83%	+0.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.06%	17.51%	+0.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.11%	18.32%	+2.79%

VFMF vs. VTI - Expense Ratio Comparison

VFMF has a 0.18% expense ratio, which is higher than VTI's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VFMF vs. VTI - Dividend Comparison

VFMF's dividend yield for the trailing twelve months is around 1.00%, less than VTI's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFMF Vanguard U.S. Multifactor ETF	1.00%	1.54%	1.60%	1.78%	2.21%	1.39%	1.56%	1.61%	1.22%	0.00%	0.00%	0.00%
VTI Vanguard Total Stock Market ETF	1.04%	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 VFMF and VTI in my portfolio?

VFMF 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, VFMF or VTI?

VTI has higher volatility (4.95%) compared to VFMF (3.56%). In terms of maximum drawdown, VFMF dropped -41.34% vs VTI's -55.45%.

Which ETF is better, VFMF or VTI?

On 5-year performance, VFMF leads with 14.43% vs 11.90% for VTI. On fees, VTI is cheaper at 0.03% per year. On volatility, VFMF has been the lower-risk option at 3.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFMF or VTI?

Over the 5-year period, VFMF has performed better with a 14.43% return vs 11.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFMF or VTI?

VTI is cheaper with a 0.03% expense ratio, compared with 0.18% for VFMF.

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

VTI has the higher dividend yield at 1.04%, compared with 1.00% for VFMF.

What is the main difference between VFMF and VTI?

VFMF is categorized as Multi-factor, while VTI is Large Cap Blend Equities. Their fees differ too: 0.18% for VFMF and 0.03% for VTI.

Which has better risk-adjusted returns?

VFMF currently has the higher Sharpe Ratio (2.65 vs 1.90), 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.