BBN vs VTI
BlackRock Taxable Municipal Bond Trust vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | BBN | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.07% | 0.03% | |
| AUM | $1.0B | $666.9B | |
| Dividend Yield | 7.16% | 1.07% | |
| Holdings | 202 | 3,543 | |
| YTD Return | +1.47% | +12.65% | |
| 1Y Return | +5.43% | +21.39% | |
| 3Y Return (annualized) | +7.48% | +21.54% | |
| 5Y Return (annualized) | -3.24% | +12.11% | |
| Volatility (annualized) | 12.8% | 15.3% | |
| Max Drawdown | -38.4% | -56.6% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Aug 27, 2010 | May 24, 2001 |
BBN vs VTI Performance
BlackRock Taxable Municipal Bond Trust (BBN) is a ETF from BlackRock, Inc. (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year BBN returned +5.43% while VTI returned +21.39%. Year to date, BBN is up 1.47% versus a gain of 12.65% for VTI.
Over three years, BBN compounded at +7.48% per year against +21.54% for VTI; over five years the annualized figures are -3.24% and +12.11% respectively. Across the full 16-year window we track, VTI has the edge at +8.07% annualized vs +0.90%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.8% for BBN. 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 -38.4% for BBN 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BBN charges 1.07% per year while VTI charges 0.03%. On a $10,000 position that is $107 vs $3 annually, a gap of $104 per year that compounds over a long holding period. On income, BBN currently yields 7.16% against 1.07% for VTI.
Holdings Overlap
BBN and VTI share 0 holdings out of 2878 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, BBN or VTI?
BBN has an expense ratio of 1.07% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $104 per year of difference.
Which performed better, BBN or VTI?
Over the past year BBN returned +5.43% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (16 years), BBN annualized +0.90% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, BBN or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 12.8% for BBN. Worst drawdown: BBN -38.4% vs VTI -56.6%.
Should I hold both BBN and VTI?
BBN and VTI have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BBN and VTI?
BBN and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2878 unique securities.
Which pays a higher dividend, BBN or VTI?
BBN yields 7.16% while VTI yields 1.07%, so BBN currently pays the higher dividend yield.
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