VGT vs. VTI
Compare and contrast key facts about Vanguard Information Technology ETF (VGT) and Vanguard Total Stock Market ETF (VTI).
VGT and VTI are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VGT is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index. It was launched on Jan 26, 2004. 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. Both VGT and VTI are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VGT or VTI.
Key characteristics
| VGT | VTI | |
|---|---|---|
| YTD Return | 4.37% | 6.51% |
| 1Y Return | 33.52% | 25.00% |
| 3Y Return (Ann) | 10.11% | 6.54% |
| 5Y Return (Ann) | 19.92% | 12.69% |
| 10Y Return (Ann) | 20.10% | 11.96% |
| Sharpe Ratio | 1.98 | 2.26 |
| Daily Std Dev | 18.20% | 12.08% |
| Max Drawdown | -54.63% | -55.45% |
| Current Drawdown | -4.72% | -3.12% |
Correlation
The correlation between VGT and VTI is 0.87, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VGT vs. VTI - Performance Comparison
In the year-to-date period, VGT achieves a 4.37% return, which is significantly lower than VTI's 6.51% return. Over the past 10 years, VGT has outperformed VTI with an annualized return of 20.10%, while VTI has yielded a comparatively lower 11.96% 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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VGT vs. VTI - Expense Ratio Comparison
VGT has a 0.10% 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
VGT vs. VTI - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Information Technology ETF (VGT) 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
VGT vs. VTI - Dividend Comparison
VGT's dividend yield for the trailing twelve months is around 0.72%, less than VTI's 1.40% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGT Vanguard Information Technology ETF | 0.72% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% | 1.12% | 1.05% |
VTI Vanguard Total Stock Market ETF | 1.40% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% | 1.74% |
Drawdowns
VGT vs. VTI - Drawdown Comparison
The maximum VGT drawdown since its inception was -54.63%, roughly equal to the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for VGT and VTI. For additional features, visit the drawdowns tool.
Volatility
VGT vs. VTI - Volatility Comparison
Vanguard Information Technology ETF (VGT) has a higher volatility of 5.97% compared to Vanguard Total Stock Market ETF (VTI) at 3.67%. This indicates that VGT'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.