BCAT vs VTI
BlackRock Capital Allocation Term Trust vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. BCAT delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | BCAT | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.41% | 0.03% | |
| AUM | $1.6B | $666.9B | |
| Dividend Yield | 22.04% | 1.07% | |
| Holdings | 917 | 3,543 | |
| YTD Return | +26.01% | +13.38% | |
| 1Y Return | +31.02% | +21.12% | |
| 3Y Return (annualized) | +22.70% | +21.85% | |
| 5Y Return (annualized) | +9.16% | +12.44% | |
| Volatility (annualized) | 14.8% | 15.3% | |
| Max Drawdown | -36.1% | -56.6% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 25, 2020 | May 24, 2001 |
BCAT vs VTI Performance
BlackRock Capital Allocation Term Trust (BCAT) 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 BCAT returned +31.02% while VTI returned +21.12%. Year to date, BCAT is up 26.01% versus a gain of 13.38% for VTI.
Over three years, BCAT compounded at +22.70% per year against +21.85% for VTI; over five years the annualized figures are +9.16% and +12.44% respectively. Across the full 6-year window we track, BCAT has the edge at +9.23% annualized vs +8.10%. 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 14.8% for BCAT. 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 -36.1% for BCAT 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BCAT charges 1.41% per year while VTI charges 0.03%. On a $10,000 position that is $141 vs $3 annually, a gap of $138 per year that compounds over a long holding period. On income, BCAT currently yields 22.04% against 1.07% for VTI.
Holdings Overlap
BCAT and VTI share 115 holdings out of 2988 unique holdings combined, representing a 29.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BCAT or VTI?
BCAT has an expense ratio of 1.41% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $138 per year of difference.
Which performed better, BCAT or VTI?
Over the past year BCAT returned +31.02% vs +21.12% for VTI, so BCAT leads on 1-year performance. Over the longest common window we track (6 years), BCAT annualized +9.23% vs +8.10% for VTI. Past performance does not guarantee future results.
Which is riskier, BCAT or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 14.8% for BCAT. Worst drawdown: BCAT -36.1% vs VTI -56.6%.
Should I hold both BCAT and VTI?
BCAT and VTI 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 BCAT and VTI?
BCAT and VTI share 115 common holdings with a 29.7% weight overlap. Combined, they hold 2988 unique securities.
Which pays a higher dividend, BCAT or VTI?
BCAT yields 22.04% while VTI yields 1.07%, so BCAT currently pays the higher dividend yield.
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