BBBS 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

MetricBBBSVTIWinner
Expense Ratio0.19%0.03%
AUM$180M$663.5B
Dividend Yield4.56%1.07%
Holdings1,3533,543
YTD Return+0.63%+14.16%
1Y Return+2.84%+23.62%
3Y Return (annualized)-+21.43%
5Y Return (annualized)-+12.33%
Volatility (annualized)2.1%15.3%
Max Drawdown-1.4%-56.6%
Fund FamilyBondBloxxVanguard (US)
CategoryFixed IncomeEquity
InceptionJan 16, 2024May 24, 2001

BBBS vs VTI Performance

BondBloxx BBB Rated 1-5 Year Corporate Bond ETF (BBBS) is a ETF from BondBloxx and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year BBBS returned +2.84% while VTI returned +23.62%. Year to date, BBBS is up 0.63% versus a gain of 14.16% for VTI.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 2.1% for BBBS. 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 -1.4% for BBBS 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BBBS charges 0.19% per year while VTI charges 0.03%. On a $10,000 position that is $19 vs $3 annually, a gap of $16 per year that compounds over a long holding period. On income, BBBS currently yields 4.56% against 1.07% for VTI.

Holdings Overlap

0.1%overlap

BBBS and VTI share 2 holdings out of 3741 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BBBSWeight in VTIDifference
KDP0.08%0.06%0.02%
GMT0.03%0.00%0.03%

Frequently Asked Questions

Which is cheaper, BBBS or VTI?

BBBS has an expense ratio of 0.19% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $16 per year of difference.

Which performed better, BBBS or VTI?

Over the past year BBBS returned +2.84% vs +23.62% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), BBBS annualized +4.81% vs +8.14% for VTI. Past performance does not guarantee future results.

Which is riskier, BBBS or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 2.1% for BBBS. Worst drawdown: BBBS -1.4% vs VTI -56.6%.

Should I hold both BBBS and VTI?

BBBS and VTI have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BBBS and VTI?

BBBS and VTI share 2 common holdings with a 0.1% weight overlap. Combined, they hold 3741 unique securities.

Which pays a higher dividend, BBBS or VTI?

BBBS yields 4.56% while VTI yields 1.07%, so BBBS currently pays the higher dividend yield.

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