BAI vs VOO
iShares AI Innovation and Tech Active ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. BAI delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | BAI | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.03% | |
| AUM | $12.8B | $979.0B | |
| Dividend Yield | 1.17% | 1.09% | |
| Holdings | 59 | 509 | |
| YTD Return | +36.13% | +13.72% | |
| 1Y Return | +44.94% | +21.63% | |
| 3Y Return (annualized) | - | +21.55% | |
| 5Y Return (annualized) | - | +13.26% | |
| Volatility (annualized) | 38.7% | 14.1% | |
| Max Drawdown | -34.1% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 21, 2024 | Sep 7, 2010 |
BAI vs VOO Performance
iShares AI Innovation and Tech Active ETF (BAI) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year BAI returned +44.94% while VOO returned +21.63%. Year to date, BAI is up 36.13% versus a gain of 13.72% for VOO.
Risk: Volatility and Drawdowns
BAI has been the more volatile fund, with annualized monthly volatility of 38.7% compared with 14.1% for VOO. 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 -34.1% for BAI 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BAI charges 0.55% per year while VOO charges 0.03%. On a $10,000 position that is $55 vs $3 annually, a gap of $52 per year that compounds over a long holding period. On income, BAI currently yields 1.17% against 1.09% for VOO.
Holdings Overlap
BAI and VOO share 18 holdings out of 531 unique holdings combined, representing a 18.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BAI or VOO?
BAI has an expense ratio of 0.55% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, BAI or VOO?
Over the past year BAI returned +44.94% vs +21.63% for VOO, so BAI leads on 1-year performance. Over the longest common window we track (2 years), BAI annualized +41.50% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, BAI or VOO?
BAI has been the more volatile fund at 38.7% annualized versus 14.1% for VOO. Worst drawdown: BAI -34.1% vs VOO -34.3%.
Should I hold both BAI and VOO?
BAI and VOO have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BAI and VOO?
BAI and VOO share 18 common holdings with a 18.7% weight overlap. Combined, they hold 531 unique securities.
Which pays a higher dividend, BAI or VOO?
BAI yields 1.17% while VOO yields 1.09%, so BAI currently pays the higher dividend yield.
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