BKT vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricBKTVOOWinner
Expense Ratio2.75%0.03%
AUM$350M$979.0B
Dividend Yield9.60%1.09%
Holdings336509
YTD Return-1.18%+11.51%
1Y Return-3.40%+21.46%
3Y Return (annualized)+4.00%+20.86%
5Y Return (annualized)-3.39%+13.01%
Volatility (annualized)9.2%14.1%
Max Drawdown-46.0%-34.3%
Fund FamilyBlackRock, Inc. (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionAug 1, 1988Sep 7, 2010

BKT vs VOO Performance

BlackRock Income Trust Inc (BKT) is a ETF from BlackRock, Inc. (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year BKT returned -3.40% while VOO returned +21.46%. Year to date, BKT is down 1.18% versus a gain of 11.51% for VOO.

Over three years, BKT compounded at +4.00% per year against +20.86% for VOO; over five years the annualized figures are -3.39% and +13.01% respectively. Across the full 16-year window we track, VOO has the edge at +13.44% annualized vs -0.40%. 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 9.2% for BKT. 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 -46.0% for BKT 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BKT charges 2.75% per year while VOO charges 0.03%. On a $10,000 position that is $275 vs $3 annually, a gap of $272 per year that compounds over a long holding period. On income, BKT currently yields 9.60% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

BKT and VOO share 0 holdings out of 599 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, BKT or VOO?

BKT has an expense ratio of 2.75% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $272 per year of difference.

Which performed better, BKT or VOO?

Over the past year BKT returned -3.40% vs +21.46% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), BKT annualized -0.40% vs +13.44% for VOO. Past performance does not guarantee future results.

Which is riskier, BKT or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 9.2% for BKT. Worst drawdown: BKT -46.0% vs VOO -34.3%.

Should I hold both BKT and VOO?

BKT and VOO have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BKT and VOO?

BKT and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 599 unique securities.

Which pays a higher dividend, BKT or VOO?

BKT yields 9.60% while VOO yields 1.09%, so BKT currently pays the higher dividend yield.

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