VFSTX vs. VTI
Compare and contrast key facts about Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) and Vanguard Total Stock Market ETF (VTI).
VFSTX is managed by Vanguard. It was launched on Oct 29, 1982. VTI is a passively managed fund by Vanguard that tracks the performance of the CRSP US Total Market Index. It was launched on May 24, 2001.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VFSTX or VTI.
Key characteristics
| VFSTX | VTI | |
|---|---|---|
| YTD Return | 5.11% | 17.74% |
| 1Y Return | 9.33% | 27.69% |
| 3Y Return (Ann) | 1.38% | 8.25% |
| 5Y Return (Ann) | 2.12% | 14.53% |
| 10Y Return (Ann) | 2.21% | 12.29% |
| Sharpe Ratio | 3.11 | 2.11 |
| Daily Std Dev | 2.97% | 13.00% |
| Max Drawdown | -9.35% | -55.45% |
| Current Drawdown | -0.10% | -0.63% |
Correlation
The correlation between VFSTX and VTI is -0.14. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
VFSTX vs. VTI - Performance Comparison
In the year-to-date period, VFSTX achieves a 5.11% return, which is significantly lower than VTI's 17.74% return. Over the past 10 years, VFSTX has underperformed VTI with an annualized return of 2.21%, while VTI has yielded a comparatively higher 12.29% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VFSTX vs. VTI - Expense Ratio Comparison
VFSTX has a 0.20% 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%.
Risk-Adjusted Performance
VFSTX vs. VTI - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) 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.
Dividends
VFSTX vs. VTI - Dividend Comparison
VFSTX's dividend yield for the trailing twelve months is around 3.71%, more than VTI's 1.32% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares | 3.71% | 3.05% | 1.93% | 1.98% | 2.23% | 2.82% | 2.68% | 1.82% | 2.06% | 2.00% | 1.97% | 2.06% |
VTI Vanguard Total Stock Market ETF | 1.32% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% | 1.74% |
Drawdowns
VFSTX vs. VTI - Drawdown Comparison
The maximum VFSTX drawdown since its inception was -9.35%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for VFSTX and VTI. For additional features, visit the drawdowns tool.
Volatility
VFSTX vs. VTI - Volatility Comparison
The current volatility for Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) is 0.55%, while Vanguard Total Stock Market ETF (VTI) has a volatility of 4.00%. This indicates that VFSTX 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.