GBAB vs VOO

GBAB vs VOO
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Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. GBAB offers more diversification with 636 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: GBAB

Side-by-Side Comparison

MetricGBABVOOWinner
Expense Ratio2.93%0.03%
AUM$394M$997.4B
Dividend Yield10.66%1.08%
Holdings636509
YTD Return+0.75%+13.20%
1Y Return+2.29%+21.62%
3Y Return (annualized)+7.86%+22.16%
5Y Return (annualized)-2.29%+13.42%
Volatility (annualized)11.7%14.1%
Max Drawdown-35.8%-34.3%
Fund FamilyGuggenheim InvestmentsVanguard (US)
CategoryTax PreferredEquity
InceptionOct 26, 2010Sep 7, 2010

GBAB vs VOO Performance

Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust (GBAB) is a ETF from Guggenheim Investments and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year GBAB returned +2.29% while VOO returned +21.62%. Year to date, GBAB is up 0.75% versus a gain of 13.20% for VOO.

Over three years, GBAB compounded at +7.86% per year against +22.16% for VOO; over five years the annualized figures are -2.29% and +13.42% respectively. Across the full 16-year window we track, VOO has the edge at +13.51% annualized vs +0.81%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 11.7% for GBAB. 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 -35.8% for GBAB 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

GBAB charges 2.93% per year while VOO charges 0.03%. On a $10,000 position that is $293 vs $3 annually, a gap of $290 per year that compounds over a long holding period. On income, GBAB currently yields 10.66% against 1.08% for VOO.

Holdings Overlap

0.5%overlap

GBAB and VOO share 2 holdings out of 717 unique holdings combined, representing a 0.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in GBABWeight in VOODifference
JPM0.25%1.26%1.01%
GS0.29%0.44%0.15%

Frequently Asked Questions

Which is cheaper, GBAB or VOO?

GBAB has an expense ratio of 2.93% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $290 per year of difference.

Which performed better, GBAB or VOO?

Over the past year GBAB returned +2.29% vs +21.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), GBAB annualized +0.81% vs +13.51% for VOO. Past performance does not guarantee future results.

Which is riskier, GBAB or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 11.7% for GBAB. Worst drawdown: GBAB -35.8% vs VOO -34.3%.

Should I hold both GBAB and VOO?

GBAB and VOO have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between GBAB and VOO?

GBAB and VOO share 2 common holdings with a 0.5% weight overlap. Combined, they hold 717 unique securities.

Which pays a higher dividend, GBAB or VOO?

GBAB yields 10.66% while VOO yields 1.08%, so GBAB currently pays the higher dividend yield.

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