BME vs VTI

Quick Verdict

VTI has a lower expense ratio. BME delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.

Lower Fees: VTIHigher Returns: BMEMore Diversified: VTI

Side-by-Side Comparison

MetricBMEVTIWinner
Expense Ratio1.14%0.03%
AUM$595M$666.9B
Dividend Yield7.05%1.07%
Holdings1563,543
YTD Return+12.08%+14.82%
1Y Return+32.53%+22.43%
3Y Return (annualized)+10.85%+21.93%
5Y Return (annualized)+4.65%+12.34%
Volatility (annualized)17.1%15.4%
Max Drawdown-44.6%-56.6%
Fund FamilyBlackRock, Inc. (US)Vanguard (US)
CategoryEquityEquity
InceptionMar 31, 2005May 24, 2001

BME vs VTI Performance

BlackRock Health Sciences Trust (BME) 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 BME returned +32.53% while VTI returned +22.43%. Year to date, BME is up 12.08% versus a gain of 14.82% for VTI.

Over three years, BME compounded at +10.85% per year against +21.93% for VTI; over five years the annualized figures are +4.65% and +12.34% respectively. Across the full 21-year window we track, VTI has the edge at +8.16% annualized vs +4.45%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

BME has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 15.4% for VTI. 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 -44.6% for BME 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BME charges 1.14% per year while VTI charges 0.03%. On a $10,000 position that is $114 vs $3 annually, a gap of $111 per year that compounds over a long holding period. On income, BME currently yields 7.05% against 1.07% for VTI.

Holdings Overlap

7.9%overlap

BME and VTI share 96 holdings out of 2828 unique holdings combined, representing a 7.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in BMEWeight in VTIDifference
LLY11.12%1.40%9.72%
JNJ8.53%0.84%7.69%
ABBV4.05%0.61%3.44%
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Frequently Asked Questions

Which is cheaper, BME or VTI?

BME has an expense ratio of 1.14% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $111 per year of difference.

Which performed better, BME or VTI?

Over the past year BME returned +32.53% vs +22.43% for VTI, so BME leads on 1-year performance. Over the longest common window we track (21 years), BME annualized +4.45% vs +8.16% for VTI. Past performance does not guarantee future results.

Which is riskier, BME or VTI?

BME has been the more volatile fund at 17.1% annualized versus 15.4% for VTI. Worst drawdown: BME -44.6% vs VTI -56.6%.

Should I hold both BME and VTI?

BME and VTI have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BME and VTI?

BME and VTI share 96 common holdings with a 7.9% weight overlap. Combined, they hold 2828 unique securities.

Which pays a higher dividend, BME or VTI?

BME yields 7.05% while VTI yields 1.07%, so BME currently pays the higher dividend yield.

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