BLW vs VTI
BlackRock Limited Duration Income Trust vs Vanguard Morningstar Total Stock Market ETF
Which is better, BLW or VTI?
Short Term High Yield Bond against Large Cap Blend.
VTI has a lower expense ratio. VTI 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 33.3%.
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 | VTI |
|---|---|---|
| Expense Ratio | 4.48% | 0.03%Best |
| AUM | $514M | $666.9B |
| Dividend Yield | 10.31% | 1.03% |
| Holdings | 2,073 | 3,543 |
| YTD Return | -8.98% | +12.43%Best |
| 1Y Return | -9.43% | +15.92%Best |
| 3Y Return (annualized) | +6.36% | +22.42%Best |
| 5Y Return (annualized) | +1.62% | +12.37%Best |
| Volatility (annualized) | 12.2%Best | 15.0% |
| Max Drawdown | -53.5%Best | -56.6% |
| $10,000 over 5 years | $10,837 | $17,916Best |
| Top 10 Weight | 8.3%Best | 33.3% |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Short Term High Yield Bond | Large Cap Blend |
| Inception | Jul 31, 2003 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Jul 29, 2003 to Sep 28, 2026 (23.2 years).
BLW vs VTI 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 VTI Performance
BlackRock Limited Duration Income Trust (BLW) is an ETF from BlackRock, Inc. (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year BLW returned -9.43% while VTI returned +15.92%. Year to date, BLW is down 8.98% versus a gain of 12.43% for VTI.
Over three years, BLW compounded at +6.36% per year against +22.42% for VTI; over five years the annualized figures are +1.62% and +12.37% respectively. Across the full 23-year window we track, VTI has the edge at +9.73% annualized vs -0.16%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 12.2% 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 -53.5% for BLW and -56.6% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.62. They move together some of the time, and apart the rest.
Fees and Cost Over Time
BLW charges 4.48% per year while VTI 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 10.31% against 1.03% for VTI.
Holdings Overlap
0.1% of BLW's money is in holdings VTI also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
The two holdings books were reported 212 days apart, BLW as of Dec 31, 2025 and VTI as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
2 positions in common, counted across the 997 positions we hold weights for in BLW and 3,463 in VTI, against full books of 2,073 and 3,543.
What only one of them owns
Our book lists 1,147 positions for VTI that do not appear in our book for BLW (97.4% of the fund), and 966 for BLW that do not appear in VTI (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 VTI 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 VTI?
BLW has an expense ratio of 4.48% while VTI charges 0.03%. VTI is the cheaper option, by $445 a year on a $10,000 investment.
Which performed better, BLW or VTI?
Over the past year BLW returned -9.43% vs +15.92% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (23 years), BLW annualized -0.16% vs +9.73% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BLW or VTI?
VTI has been the more volatile fund at 15.0% annualized versus 12.2% for BLW. Worst drawdown: BLW -53.5% vs VTI -56.6%.
Should I hold both BLW and VTI?
BLW and VTI have a monthly-return correlation of 0.62, 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 VTI?
BLW yields 10.31% while VTI yields 1.03%, so BLW currently pays the higher dividend yield.
Is VTI better than BLW?
VTI has a lower expense ratio. VTI 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 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.