The Vanguard Total Stock Market Index Fund ETF Shares (VTI) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. VTI is a Vanguard Large Blend fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between VTI and DIA? And which fund is better?
The expense ratio of VTI is 0.13 percentage points lower than DIA’s (0.03% vs. 0.16%). VTI also has a higher exposure to the technology sector and a higher standard deviation. Overall, VTI has provided higher returns than DIA over the past ten years.
In this article, we’ll compare VTI vs. DIA. We’ll look at performance and annual returns, as well as at their fund composition and portfolio growth. Moreover, I’ll also discuss VTI’s and DIA’s industry exposure, holdings, and risk metrics and examine how these affect their overall returns.
Summary
| VTI | DIA | |
| Name | Vanguard Total Stock Market Index Fund ETF Shares | SPDR Dow Jones Industrial Average ETF Trust |
| Category | Large Blend | Large Value |
| Issuer | Vanguard | SPDR State Street Global Advisors |
| AUM | 1.26T | 30.46B |
| Avg. Return | 14.70% | 13.35% |
| Div. Yield | 1.26% | 1.61% |
| Expense Ratio | 0.03% | 0.16% |
The Vanguard Total Stock Market Index Fund ETF Shares (VTI) is a Large Blend fund that is issued by Vanguard. It currently has 1.26T total assets under management and has yielded an average annual return of 14.70% over the past 10 years. The fund has a dividend yield of 1.26% with an expense ratio of 0.03%.
The SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.
VTI’s dividend yield is 0.35% lower than that of DIA (1.26% vs. 1.61%). Also, VTI yielded on average 1.34% more per year over the past decade (14.70% vs. 13.35%). The expense ratio of VTI is 0.13 percentage points lower than DIA’s (0.03% vs. 0.16%).
Fund Composition
Industry Exposure
| VTI | DIA | |
| Technology | 24.1% | 17.32% |
| Industrials | 9.39% | 16.7% |
| Energy | 2.77% | 2.0% |
| Communication Services | 10.4% | 4.42% |
| Utilities | 2.29% | 0.0% |
| Healthcare | 13.64% | 17.92% |
| Consumer Defensive | 5.77% | 6.3% |
| Real Estate | 3.59% | 0.0% |
| Financial Services | 13.77% | 20.68% |
| Consumer Cyclical | 11.83% | 13.44% |
| Basic Materials | 2.44% | 1.21% |
The Vanguard Total Stock Market Index Fund ETF Shares (VTI) has the most exposure to the Technology sector at 24.1%. This is followed by Financial Services and Healthcare at 13.77% and 13.64% respectively. Basic Materials (2.44%), Energy (2.77%), and Real Estate (3.59%) only make up 8.80% of the fund’s total assets.
VTI’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 5.77%, 9.39%, 10.4%, 11.83%, and 13.64%.
The SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.
DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.
VTI is 6.78% more exposed to the Technology sector than DIA (24.1% vs 17.32%). VTI’s exposure to Financial Services and Healthcare stocks is 6.91% lower and 4.28% lower respectively (13.77% vs. 20.68% and 13.64% vs. 17.92%). In total, Basic Materials, Energy, and Real Estate also make up 5.59% more of the fund’s holdings compared to DIA (8.80% vs. 3.21%).
Holdings
| VTI Holdings | Weight |
| Apple Inc | 4.9% |
| Microsoft Corp | 4.6% |
| Amazon.com Inc | 3.33% |
| Facebook Inc Class A | 1.88% |
| Alphabet Inc Class A | 1.66% |
| Alphabet Inc Class C | 1.56% |
| Tesla Inc | 1.18% |
| Berkshire Hathaway Inc Class B | 1.09% |
| NVIDIA Corp | 1.07% |
| JPMorgan Chase & Co | 1.06% |
VTI’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 4.9%, 4.6%, 3.33%, 1.88%, and 1.66%.
Alphabet Inc Class C (1.56%), Tesla Inc (1.18%), and Berkshire Hathaway Inc Class B (1.09%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VTI’s holdings at 1.07% and 1.06%.
| DIA Holdings | Weight |
| UnitedHealth Group Inc | 7.63% |
| Goldman Sachs Group Inc | 7.23% |
| The Home Depot Inc | 6.07% |
| Microsoft Corp | 5.16% |
| Salesforce.com Inc | 4.65% |
| Amgen Inc | 4.64% |
| Boeing Co | 4.56% |
| Visa Inc Class A | 4.45% |
| McDonald’s Corp | 4.4% |
| Honeywell International Inc | 4.18% |
DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.
Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.
Performance
Annual Returns
| Year | VTI | DIA |
| 2020 | 20.95% | 9.63% |
| 2019 | 30.8% | 25.09% |
| 2018 | -5.13% | -3.6% |
| 2017 | 21.16% | 27.97% |
| 2016 | 12.68% | 16.28% |
| 2015 | 0.4% | 0.1% |
| 2014 | 12.56% | 9.88% |
| 2013 | 33.51% | 29.41% |
| 2012 | 16.41% | 10.04% |
| 2011 | 1.06% | 8.21% |
| 2010 | 17.26% | 13.87% |
VTI had its best year in 2013 with an annual return of 33.51%. VTI’s worst year over the past decade yielded -5.13% and occurred in 2018. In most years the Vanguard Total Stock Market Index Fund ETF Shares provided moderate returns such as in 2016, 2012, and 2010 where annual returns amounted to 12.68%, 16.41%, and 17.26% respectively.
The year 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| VTI | $10,000 | $42,648 | 14.70% |
| DIA | $10,000 | $37,965 | 13.35% |
A $10,000 investment in VTI would have resulted in a final balance of $42,648. This is a profit of $32,648 over 11 years and amounts to a compound annual growth rate (CAGR) of 14.70%.
With a $10,000 investment in DIA, the end total would have been $37,965. This equates to a $27,965 profit over 11 years and a compound annual growth rate (CAGR) of 13.35%.
VTI’s CAGR is 1.34 percentage points higher than that of DIA and as a result, would have yielded $4,683 more on a $10,000 investment. Thus, VTI outperformed DIA by 1.34% annually.
Current recommendations:
Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:
P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!
1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!
2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!
3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).
4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.
5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!
To see all of my most up-to-date recommendations, check out the Recommended Tools section.
I believe that money is just a means to an end: to be free to spend your time as you wish, to maximize your positive impact on the world.
