BKT vs VTI
BKT vs VTI
BlackRock Income Trust Inc vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | BKT | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 2.75% | 0.03% | |
| AUM | $350M | $663.5B | |
| Dividend Yield | 9.60% | 1.07% | |
| Holdings | 336 | 3,543 | |
| YTD Return | -0.51% | +13.92% | |
| 1Y Return | -2.74% | +24.07% | |
| 3Y Return (annualized) | +4.71% | +20.88% | |
| 5Y Return (annualized) | -3.29% | +12.47% | |
| Volatility (annualized) | 9.2% | 15.3% | |
| Max Drawdown | -46.0% | -56.6% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 1, 1988 | May 24, 2001 |
BKT vs VTI Performance
BlackRock Income Trust Inc (BKT) is a ETF from BlackRock, Inc. (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year BKT returned -2.74% while VTI returned +24.07%. Year to date, BKT is down 0.51% versus a gain of 13.92% for VTI.
Over three years, BKT compounded at +4.71% per year against +20.88% for VTI; over five years the annualized figures are -3.29% and +12.47% respectively. Across the full 25-year window we track, VTI has the edge at +8.13% annualized vs -0.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BKT charges 2.75% per year while VTI 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 1.07% for VTI.
Holdings Overlap
BKT and VTI share 0 holdings out of 2877 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 VTI?
BKT has an expense ratio of 2.75% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $272 per year of difference.
Which performed better, BKT or VTI?
Over the past year BKT returned -2.74% vs +24.07% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), BKT annualized -0.38% vs +8.13% for VTI. Past performance does not guarantee future results.
Which is riskier, BKT or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 9.2% for BKT. Worst drawdown: BKT -46.0% vs VTI -56.6%.
Should I hold both BKT and VTI?
BKT and VTI have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BKT and VTI?
BKT and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2877 unique securities.
Which pays a higher dividend, BKT or VTI?
BKT yields 9.60% while VTI yields 1.07%, so BKT currently pays the higher dividend yield.
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