BLW vs VOO
BlackRock Limited Duration Income Trust vs Vanguard S&P 500 ETF
Which is better, BLW or VOO?
Short Term High Yield Bond against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. BLW is less concentrated, with 8.3% of the fund in its ten largest positions against 36.4%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BLW | VOO |
|---|---|---|
| Expense Ratio | 4.48% | 0.03%Best |
| AUM | $515M | $997.4B |
| Dividend Yield | 10.33% | 1.08% |
| Holdings | 2,073 | 509 |
| YTD Return | -2.08% | +12.74%Best |
| 1Y Return | -2.26% | +19.43%Best |
| 3Y Return (annualized) | +8.16% | +21.18%Best |
| 5Y Return (annualized) | +2.71% | +12.76%Best |
| Volatility (annualized) | 11.3%Best | 14.1% |
| Max Drawdown | -50.1% | -34.3%Best |
| $10,000 over 5 years | $11,430 | $18,230Best |
| Top 10 Weight | 8.3%Best | 36.4% |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Short Term High Yield Bond | Large Cap Blend |
| Inception | Jul 31, 2003 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 8, 2026 (16 years).
BLW vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
BLW vs VOO Performance
BlackRock Limited Duration Income Trust (BLW) is an ETF from BlackRock, Inc. (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year BLW returned -2.26% while VOO returned +19.43%. Year to date, BLW is down 2.08% versus a gain of 12.74% for VOO.
Over three years, BLW compounded at +8.16% per year against +21.18% for VOO; over five years the annualized figures are +2.71% and +12.76% respectively. Across the full 16-year window we track, VOO has the edge at +13.43% annualized vs +1.09%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 11.3% for BLW. 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 -50.1% for BLW and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BLW charges 4.48% per year while VOO charges 0.03%. On a $10,000 position that is $448 vs $3 annually, a gap of $445 per year that compounds over a long holding period. On income, BLW currently yields 10.33% against 1.08% for VOO.
Holdings Overlap
We hold position weights for 997 holdings in BLW and 504 in VOO, totalling 102.8% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 181 days apart, BLW as of Dec 31, 2025 and VOO as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 997 positions we hold weights for in BLW and 504 in VOO, against full books of 2,073 and 509.
What only one of them owns
Our book lists 493 positions for VOO that do not appear in our book for BLW (99.3% of the fund), and 967 for BLW that do not appear in VOO (102.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of BLW and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BLW or VOO?
BLW has an expense ratio of 4.48% while VOO charges 0.03%. VOO is the cheaper option, by $445 a year on a $10,000 investment.
Which performed better, BLW or VOO?
Over the past year BLW returned -2.26% vs +19.43% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), BLW annualized +1.09% vs +13.43% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BLW or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 11.3% for BLW. Worst drawdown: BLW -50.1% vs VOO -34.3%.
Should I hold both BLW and VOO?
BLW and VOO have a monthly-return correlation of 0.70, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BLW or VOO?
BLW yields 10.33% while VOO yields 1.08%, so BLW currently pays the higher dividend yield.
Is VOO better than BLW?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. BLW is less concentrated, with 8.3% of the fund in its ten largest positions against 36.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.