TAXX vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricTAXXVTIWinner
Expense Ratio0.35%0.03%
AUM$297M$663.5B
Dividend Yield3.51%1.07%
Holdings3263,543
YTD Return+1.03%+10.14%
1Y Return+2.94%+19.82%
3Y Return (annualized)-+18.94%
5Y Return (annualized)-+11.79%
Volatility (annualized)1.5%15.4%
Max Drawdown-0.9%-56.6%
Fund FamilyBondBloxxVanguard (US)
CategoryFixed IncomeEquity
InceptionMar 14, 2024May 24, 2001

TAXX vs VTI Performance

BondBloxx IR+M Tax-Aware Short Duration ETF (TAXX) is a ETF from BondBloxx and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year TAXX returned +2.94% while VTI returned +19.82%. Year to date, TAXX is up 1.03% versus a gain of 10.14% for VTI.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 1.5% for TAXX. 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 -0.9% for TAXX 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TAXX charges 0.35% per year while VTI charges 0.03%. On a $10,000 position that is $35 vs $3 annually, a gap of $32 per year that compounds over a long holding period. On income, TAXX currently yields 3.51% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

TAXX and VTI share 0 holdings out of 2919 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, TAXX or VTI?

TAXX has an expense ratio of 0.35% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $32 per year of difference.

Which performed better, TAXX or VTI?

Over the past year TAXX returned +2.94% vs +19.82% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (2 years), TAXX annualized +3.82% vs +7.99% for VTI. Past performance does not guarantee future results.

Which is riskier, TAXX or VTI?

VTI has been the more volatile fund at 15.4% annualized versus 1.5% for TAXX. Worst drawdown: TAXX -0.9% vs VTI -56.6%.

Should I hold both TAXX and VTI?

TAXX and VTI have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TAXX and VTI?

TAXX and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2919 unique securities.

Which pays a higher dividend, TAXX or VTI?

TAXX yields 3.51% while VTI yields 1.07%, so TAXX currently pays the higher dividend yield.

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