BAB vs VTI
Invesco Taxable Municipal Bond ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, BAB or VTI?
Municipal Bond against Large Cap Blend.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BAB | VTI |
|---|---|---|
| Expense Ratio | 0.28% | 0.03%Best |
| AUM | $898M | $666.9B |
| Dividend Yield | 4.26% | 1.03% |
| Holdings | 1,480 | 3,543 |
| YTD Return | -1.75% | +14.05%Best |
| 1Y Return | -0.33% | +16.93%Best |
| 3Y Return (annualized) | +4.91% | +22.65%Best |
| 5Y Return (annualized) | -1.48% | +12.46%Best |
| Volatility (annualized) | 7.3%Best | 14.8% |
| Max Drawdown | -27.8%Best | -35.0% |
| $10,000 over 5 years | $9,282 | $17,988Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Nov 17, 2009 | May 24, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 17, 2009 to Sep 22, 2026 (16.8 years).
BAB vs VTI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
BAB vs VTI Performance
Invesco Taxable Municipal Bond ETF (BAB) is an ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year BAB returned -0.33% while VTI returned +16.93%. Year to date, BAB is down 1.75% versus a gain of 14.05% for VTI.
Over three years, BAB compounded at +4.91% per year against +22.65% for VTI; over five years the annualized figures are -1.48% and +12.46% respectively. Across the full 17-year window we track, VTI has the edge at +12.56% annualized vs +1.43%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 14.8% compared with 7.3% for BAB. 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 -27.8% for BAB and -35.0% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.16. They move largely independently of each other.
Fees and Cost Over Time
BAB charges 0.28% per year while VTI charges 0.03%. On a $10,000 position that is $28 vs $3 annually, a gap of $25 per year that compounds over a long holding period. On income, BAB currently yields 4.26% against 1.03% for VTI.
Holdings Overlap
We hold position weights for 777 holdings in BAB and 3,463 in VTI, totalling 74.9% and 98.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 777 positions we hold weights for in BAB and 3,463 in VTI, against full books of 1,480 and 3,543.
You are not choosing between two funds in isolation.
Whichever of BAB and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BAB or VTI?
BAB has an expense ratio of 0.28% while VTI charges 0.03%. VTI is the cheaper option, by $25 a year on a $10,000 investment.
Which performed better, BAB or VTI?
Over the past year BAB returned -0.33% vs +16.93% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (17 years), BAB annualized +1.43% vs +12.56% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BAB or VTI?
VTI has been the more volatile fund at 14.8% annualized versus 7.3% for BAB. Worst drawdown: BAB -27.8% vs VTI -35.0%.
Should I hold both BAB and VTI?
BAB and VTI have a monthly-return correlation of 0.16, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BAB or VTI?
BAB yields 4.26% while VTI yields 1.03%, so BAB currently pays the higher dividend yield.
Is VTI better than BAB?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.