BGT vs VOO
BGT vs VOO
BlackRock Floating Rate Income Trust vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | BGT | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 2.10% | 0.03% | |
| AUM | $331M | $979.0B | |
| Dividend Yield | 12.94% | 1.09% | |
| Holdings | 485 | 509 | |
| YTD Return | +4.24% | +13.31% | |
| 1Y Return | -0.90% | +24.01% | |
| 3Y Return (annualized) | +9.36% | +21.17% | |
| 5Y Return (annualized) | +6.92% | +13.34% | |
| Volatility (annualized) | 14.1% | 14.1% | |
| Max Drawdown | -64.1% | -34.3% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 30, 2004 | Sep 7, 2010 |
BGT vs VOO Performance
BlackRock Floating Rate Income Trust (BGT) is a ETF from BlackRock, Inc. (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year BGT returned -0.90% while VOO returned +24.01%. Year to date, BGT is up 4.24% versus a gain of 13.31% for VOO.
Over three years, BGT compounded at +9.36% per year against +21.17% for VOO; over five years the annualized figures are +6.92% and +13.34% respectively. Across the full 16-year window we track, VOO has the edge at +13.55% annualized vs -0.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 14.1% for BGT. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -64.1% for BGT and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BGT charges 2.10% per year while VOO charges 0.03%. On a $10,000 position that is $210 vs $3 annually, a gap of $207 per year that compounds over a long holding period. On income, BGT currently yields 12.94% against 1.09% for VOO.
Holdings Overlap
BGT and VOO share 0 holdings out of 738 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BGT or VOO?
BGT has an expense ratio of 2.10% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $207 per year of difference.
Which performed better, BGT or VOO?
Over the past year BGT returned -0.90% vs +24.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), BGT annualized -0.31% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, BGT or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 14.1% for BGT. Worst drawdown: BGT -64.1% vs VOO -34.3%.
Should I hold both BGT and VOO?
BGT and VOO have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BGT and VOO?
BGT and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 738 unique securities.
Which pays a higher dividend, BGT or VOO?
BGT yields 12.94% while VOO yields 1.09%, so BGT currently pays the higher dividend yield.
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