VTI vs. KDEF

Last updated Jun 14, 2026

VTI (Vanguard Total Stock Market ETF) and KDEF (PLUS Korea Defense Industry Index ETF) are both exchange-traded funds - VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index, while KDEF is a Aerospace & Defense fund tracking the The Korea Defence Industry Index. Both are passively managed. Over the past year, VTI returned 26.27% vs 23.84% for KDEF. At a 0.35 correlation, their price movements are largely independent. VTI charges 0.03%/yr vs 0.65%/yr for KDEF.

Performance

VTI vs. KDEF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total Stock Market ETF (VTI) and PLUS Korea Defense Industry Index ETF (KDEF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with VTI having a 9.62% return and KDEF slightly higher at 10.00%.

VTI

• 1D: 0.57%
• 1M: 1.00%
• YTD: 9.62%
• 6M: 9.69%
• 1Y: 26.27%
• 3Y*: 20.60%
• 5Y*: 12.20%
• 10Y*: 15.02%

KDEF

• 1D: 1.61%
• 1M: -9.85%
• YTD: 10.00%
• 6M: 13.24%
• 1Y: 23.84%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VTI vs. KDEF - Yearly Performance Comparison

	2026 (YTD)	2025
VTI Vanguard Total Stock Market ETF	9.62%	13.66%
KDEF PLUS Korea Defense Industry Index ETF	10.00%	116.28%

Correlation

The correlation between VTI and KDEF is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (All Time) Calculated using the full available price history since Feb 5, 2025	0.35

VTI vs. KDEF - Sectors Allocation Comparison

Sectors	VTI	KDEF
Technology	33.3%	3.1%
Financial Services	11.9%	-
Communication Services	10.1%	-
Consumer Cyclical	9.8%	5.8%
Industrials	9.5%	84.9%
Healthcare	9.1%	2.4%
Consumer Defensive	4.7%	-
Energy	3.8%	-
Utilities	2.7%	-
Real Estate	2.4%	-
Basic Materials	2.0%	-

Return for Risk

VTI vs. KDEF — Risk / Return Rank

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

VTI

VTI Risk / Return Rank: 70
VTI Sharpe Ratio Rank: 70
VTI Sortino Ratio Rank: 68
VTI Omega Ratio Rank: 69
VTI Calmar Ratio Rank: 64
VTI Martin Ratio Rank: 76

KDEF

KDEF Risk / Return Rank: 21
KDEF Sharpe Ratio Rank: 20
KDEF Sortino Ratio Rank: 22
KDEF Omega Ratio Rank: 22
KDEF Calmar Ratio Rank: 20
KDEF Martin Ratio Rank: 22

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.

VTI vs. KDEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Stock Market ETF (VTI) and PLUS Korea Defense Industry Index ETF (KDEF). 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.

	VTI	KDEF	Difference
Sharpe ratio: Return per unit of total volatility	1.97	0.60	+1.37
Sortino ratio: Return per unit of downside risk	2.67	1.10	+1.57
Omega ratio: Gain probability vs. loss probability	1.35	1.13	+0.22
Calmar ratio: Return relative to maximum drawdown	2.79	0.78	+2.01
Martin ratio: Return relative to average drawdown	12.52	2.48	+10.04

VTI vs. KDEF - Sharpe Ratio Comparison

The current VTI Sharpe Ratio is 1.97, which is higher than the KDEF Sharpe Ratio of 0.60. The chart below compares the historical Sharpe Ratios of VTI and KDEF, 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

VTI vs. KDEF - Drawdown Comparison

The maximum VTI drawdown since its inception was -55.45%, which is greater than KDEF's maximum drawdown of -35.55%. Use the drawdown chart below to compare losses from any high point for VTI and KDEF.

Drawdown Indicators

	VTI	KDEF	Difference
Max Drawdown Largest peak-to-trough decline	-55.45%	-35.55%	-19.90%
Max Drawdown (1Y) Largest decline over 1 year	-8.92%	-35.55%	+26.63%
Max Drawdown (3Y) Largest decline over 3 years	-19.30%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-25.36%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-35.00%	—	—
Current Drawdown Current decline from peak	-2.14%	-26.83%	+24.69%
Average Drawdown Average peak-to-trough decline	-8.02%	-6.96%	-1.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.99%	11.09%	-9.10%

Volatility

VTI vs. KDEF - Volatility Comparison

The current volatility for Vanguard Total Stock Market ETF (VTI) is 4.50%, while PLUS Korea Defense Industry Index ETF (KDEF) has a volatility of 18.52%. This indicates that VTI experiences smaller price fluctuations and is considered to be less risky than KDEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTI	KDEF	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.50%	18.52%	-14.02%
Volatility (6M) Calculated over the trailing 6-month period	9.82%	38.55%	-28.73%
Volatility (1Y) Calculated over the trailing 1-year period	12.64%	46.43%	-33.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.47%	47.55%	-30.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.33%	47.55%	-29.22%

VTI vs. KDEF - Expense Ratio Comparison

VTI has a 0.03% expense ratio, which is lower than KDEF's 0.65% expense ratio.

Dividends

VTI vs. KDEF - Dividend Comparison

VTI's dividend yield for the trailing twelve months is around 1.03%, less than KDEF's 6.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KDEF PLUS Korea Defense Industry Index ETF	6.25%	5.06%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VTI Vanguard Total Stock Market ETF	1.03%	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 VTI and KDEF in my portfolio?

VTI and KDEF have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTI or KDEF?

KDEF has higher volatility (18.52%) compared to VTI (4.50%). In terms of maximum drawdown, VTI dropped -55.45% vs KDEF's -35.55%.

Which ETF is better, VTI or KDEF?

On 1-year performance, VTI leads with 26.27% vs 23.84% for KDEF. On fees, VTI is cheaper at 0.03% per year. On volatility, VTI has been the lower-risk option at 4.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTI or KDEF?

Over the 1-year period, VTI has performed better with a 26.27% return vs 23.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTI or KDEF?

VTI is cheaper with a 0.03% expense ratio, compared with 0.65% for KDEF.

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

KDEF has the higher dividend yield at 6.25%, compared with 1.03% for VTI.

What is the main difference between VTI and KDEF?

VTI is categorized as Large Cap Blend Equities, while KDEF is Aerospace & Defense. VTI tracks CRSP US Total Market Index, while KDEF tracks The Korea Defence Industry Index. They also come from different issuers: Vanguard and PLUS. Their fees differ too: 0.03% for VTI and 0.65% for KDEF.

Which has better risk-adjusted returns?

VTI currently has the higher Sharpe Ratio (1.97 vs 0.60), 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.