BTZ vs VOO
BlackRock Credit Allocation Income Trust vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. BTZ offers more diversification with 2,036 holdings.
Side-by-Side Comparison
| Metric | BTZ | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.12% | 0.03% | |
| AUM | $1.0B | $979.0B | |
| Dividend Yield | 9.18% | 1.09% | |
| Holdings | 2,036 | 509 | |
| YTD Return | +1.34% | +14.48% | |
| 1Y Return | +2.43% | +22.02% | |
| 3Y Return (annualized) | +10.68% | +21.80% | |
| 5Y Return (annualized) | +0.92% | +13.36% | |
| Volatility (annualized) | 18.2% | 14.2% | |
| Max Drawdown | -80.2% | -34.3% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 27, 2006 | Sep 7, 2010 |
BTZ vs VOO Performance
BlackRock Credit Allocation Income Trust (BTZ) is a ETF from BlackRock, Inc. (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year BTZ returned +2.43% while VOO returned +22.02%. Year to date, BTZ is up 1.34% versus a gain of 14.48% for VOO.
Over three years, BTZ compounded at +10.68% per year against +21.80% for VOO; over five years the annualized figures are +0.92% and +13.36% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs -1.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BTZ has been the more volatile fund, with annualized monthly volatility of 18.2% compared with 14.2% for VOO. 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 -80.2% for BTZ and -34.3% for VOO. 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
BTZ charges 1.12% per year while VOO charges 0.03%. On a $10,000 position that is $112 vs $3 annually, a gap of $109 per year that compounds over a long holding period. On income, BTZ currently yields 9.18% against 1.09% for VOO.
Holdings Overlap
BTZ and VOO share 0 holdings out of 1646 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, BTZ or VOO?
BTZ has an expense ratio of 1.12% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $109 per year of difference.
Which performed better, BTZ or VOO?
Over the past year BTZ returned +2.43% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), BTZ annualized -1.98% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, BTZ or VOO?
BTZ has been the more volatile fund at 18.2% annualized versus 14.2% for VOO. Worst drawdown: BTZ -80.2% vs VOO -34.3%.
Should I hold both BTZ and VOO?
BTZ and VOO 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 BTZ and VOO?
BTZ and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1646 unique securities.
Which pays a higher dividend, BTZ or VOO?
BTZ yields 9.18% while VOO yields 1.09%, so BTZ currently pays the higher dividend yield.
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