BSMW vs VTI

BSMW vs VTI
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Quick Verdict

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

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricBSMWVTIWinner
Expense Ratio0.18%0.03%
AUM$216M$666.9B
Dividend Yield3.27%1.07%
Holdings1,8073,543
YTD Return+0.28%+13.14%
1Y Return+4.62%+22.35%
3Y Return (annualized)+3.24%+21.83%
5Y Return (annualized)-+12.01%
Volatility (annualized)6.3%15.3%
Max Drawdown-7.6%-56.6%
Fund FamilyInvesco (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionMar 1, 2023May 24, 2001

BSMW vs VTI Performance

Invesco BulletShares 2032 Municipal Bond ETF (BSMW) is a ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year BSMW returned +4.62% while VTI returned +22.35%. Year to date, BSMW is up 0.28% versus a gain of 13.14% for VTI.

Over three years, BSMW compounded at +3.24% per year against +21.83% for VTI. Across the full 4-year window we track, VTI has the edge at +8.09% annualized vs +2.99%. 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 6.3% for BSMW. 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 -7.6% for BSMW 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BSMW charges 0.18% per year while VTI charges 0.03%. On a $10,000 position that is $18 vs $3 annually, a gap of $15 per year that compounds over a long holding period. On income, BSMW currently yields 3.27% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

BSMW and VTI share 0 holdings out of 3340 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, BSMW or VTI?

BSMW has an expense ratio of 0.18% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $15 per year of difference.

Which performed better, BSMW or VTI?

Over the past year BSMW returned +4.62% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (4 years), BSMW annualized +2.99% vs +8.09% for VTI. Past performance does not guarantee future results.

Which is riskier, BSMW or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 6.3% for BSMW. Worst drawdown: BSMW -7.6% vs VTI -56.6%.

Should I hold both BSMW and VTI?

BSMW and VTI have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BSMW and VTI?

BSMW and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3340 unique securities.

Which pays a higher dividend, BSMW or VTI?

BSMW yields 3.27% while VTI yields 1.07%, so BSMW currently pays the higher dividend yield.

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