BLW vs VTI
BlackRock Limited Duration Income 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 | BLW | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 4.48% | 0.03% | |
| AUM | $520M | $666.9B | |
| Dividend Yield | 10.33% | 1.07% | |
| Holdings | 2,073 | 3,543 | |
| YTD Return | +0.66% | +14.82% | |
| 1Y Return | +1.35% | +22.43% | |
| 3Y Return (annualized) | +9.42% | +21.93% | |
| 5Y Return (annualized) | +3.96% | +12.34% | |
| Volatility (annualized) | 12.1% | 15.4% | |
| Max Drawdown | -53.5% | -56.6% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 31, 2003 | May 24, 2001 |
BLW vs VTI Performance
BlackRock Limited Duration Income Trust (BLW) 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 BLW returned +1.35% while VTI returned +22.43%. Year to date, BLW is up 0.66% versus a gain of 14.82% for VTI.
Over three years, BLW compounded at +9.42% per year against +21.93% for VTI; over five years the annualized figures are +3.96% and +12.34% respectively. Across the full 23-year window we track, VTI has the edge at +8.16% annualized vs +0.27%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 12.1% 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 worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
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 10.33% against 1.07% for VTI.
Holdings Overlap
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. On a $10,000 investment, that is $445 per year of difference.
Which performed better, BLW or VTI?
Over the past year BLW returned +1.35% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (23 years), BLW annualized +0.27% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, BLW or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 12.1% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BLW and VTI?
BLW and VTI share 2 common holdings with a 0.0% weight overlap. Combined, they hold 3782 unique securities.
Which pays a higher dividend, BLW or VTI?
BLW yields 10.33% while VTI yields 1.07%, so BLW currently pays the higher dividend yield.
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