BABO vs VTI
YieldMax BABA Option Income Strategy ETF 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 | BABO | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.00% | 0.03% | |
| AUM | $17M | $663.5B | |
| Dividend Yield | 110.77% | 1.07% | |
| Holdings | 11 | 3,543 | |
| YTD Return | -20.13% | +14.22% | |
| 1Y Return | -3.16% | +22.19% | |
| 3Y Return (annualized) | - | +21.27% | |
| 5Y Return (annualized) | - | +12.23% | |
| Volatility (annualized) | 41.5% | 15.3% | |
| Max Drawdown | -42.6% | -56.6% | |
| Fund Family | YieldMax ETF | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 7, 2024 | May 24, 2001 |
BABO vs VTI Performance
YieldMax BABA Option Income Strategy ETF (BABO) is a ETF from YieldMax ETF and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year BABO returned -3.16% while VTI returned +22.19%. Year to date, BABO is down 20.13% versus a gain of 14.22% for VTI.
Risk: Volatility and Drawdowns
BABO has been the more volatile fund, with annualized monthly volatility of 41.5% compared with 15.3% for VTI. 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 -42.6% for BABO 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 0.12. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BABO charges 1.00% per year while VTI charges 0.03%. On a $10,000 position that is $100 vs $3 annually, a gap of $97 per year that compounds over a long holding period. On income, BABO currently yields 110.77% against 1.07% for VTI.
Holdings Overlap
BABO and VTI share 0 holdings out of 2786 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, BABO or VTI?
BABO has an expense ratio of 1.00% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $97 per year of difference.
Which performed better, BABO or VTI?
Over the past year BABO returned -3.16% vs +22.19% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (2 years), BABO annualized +10.89% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, BABO or VTI?
BABO has been the more volatile fund at 41.5% annualized versus 15.3% for VTI. Worst drawdown: BABO -42.6% vs VTI -56.6%.
Should I hold both BABO and VTI?
BABO and VTI have a monthly-return correlation of 0.12, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BABO and VTI?
BABO and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2786 unique securities.
Which pays a higher dividend, BABO or VTI?
BABO yields 110.77% while VTI yields 1.07%, so BABO currently pays the higher dividend yield.
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