TAXE 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

MetricTAXEVOOWinner
Expense Ratio0.24%0.03%
AUM$192M$979.0B
Dividend Yield3.58%1.09%
Holdings347509
YTD Return+0.49%+9.95%
1Y Return+5.18%+19.58%
3Y Return (annualized)-+19.43%
5Y Return (annualized)-+12.89%
Volatility (annualized)3.6%14.2%
Max Drawdown-3.7%-34.3%
Fund FamilyT.Rowe PriceVanguard (US)
CategoryFixed IncomeEquity
InceptionJul 10, 2024Sep 7, 2010

TAXE vs VOO Performance

T. Rowe Price Intermediate Municipal Income ETF (TAXE) is a ETF from T.Rowe Price and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year TAXE returned +5.18% while VOO returned +19.58%. Year to date, TAXE is up 0.49% versus a gain of 9.95% for VOO.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 3.6% for TAXE. 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 -3.7% for TAXE 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TAXE charges 0.24% per year while VOO charges 0.03%. On a $10,000 position that is $24 vs $3 annually, a gap of $21 per year that compounds over a long holding period. On income, TAXE currently yields 3.58% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

TAXE and VOO share 0 holdings out of 676 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, TAXE or VOO?

TAXE has an expense ratio of 0.24% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $21 per year of difference.

Which performed better, TAXE or VOO?

Over the past year TAXE returned +5.18% vs +19.58% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (2 years), TAXE annualized +3.86% vs +13.35% for VOO. Past performance does not guarantee future results.

Which is riskier, TAXE or VOO?

VOO has been the more volatile fund at 14.2% annualized versus 3.6% for TAXE. Worst drawdown: TAXE -3.7% vs VOO -34.3%.

Should I hold both TAXE and VOO?

TAXE and VOO have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TAXE and VOO?

TAXE and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 676 unique securities.

Which pays a higher dividend, TAXE or VOO?

TAXE yields 3.58% while VOO yields 1.09%, so TAXE currently pays the higher dividend yield.

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