GBAB vs VTI
Guggenheim Taxable Municipal Bond & Investment Grade Debt 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 | GBAB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 2.93% | 0.03% | |
| AUM | $394M | $666.9B | |
| Dividend Yield | 10.66% | 1.07% | |
| Holdings | 636 | 3,543 | |
| YTD Return | -0.55% | +13.14% | |
| 1Y Return | +0.18% | +22.35% | |
| 3Y Return (annualized) | +7.34% | +21.83% | |
| 5Y Return (annualized) | -2.53% | +12.01% | |
| Volatility (annualized) | 11.7% | 15.3% | |
| Max Drawdown | -35.8% | -56.6% | |
| Fund Family | Guggenheim Investments | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Oct 26, 2010 | May 24, 2001 |
GBAB vs VTI Performance
Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust (GBAB) is a ETF from Guggenheim Investments and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year GBAB returned +0.18% while VTI returned +22.35%. Year to date, GBAB is down 0.55% versus a gain of 13.14% for VTI.
Over three years, GBAB compounded at +7.34% per year against +21.83% for VTI; over five years the annualized figures are -2.53% and +12.01% respectively. Across the full 16-year window we track, VTI has the edge at +8.09% annualized vs +0.73%. 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 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 -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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GBAB charges 2.93% per year while VTI 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 1.07% for VTI.
Holdings Overlap
GBAB and VTI share 4 holdings out of 2997 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GBAB or VTI?
GBAB has an expense ratio of 2.93% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $290 per year of difference.
Which performed better, GBAB or VTI?
Over the past year GBAB returned +0.18% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (16 years), GBAB annualized +0.73% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, GBAB or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 11.7% for GBAB. Worst drawdown: GBAB -35.8% vs VTI -56.6%.
Should I hold both GBAB and VTI?
GBAB and VTI 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 VTI?
GBAB and VTI share 4 common holdings with a 0.5% weight overlap. Combined, they hold 2997 unique securities.
Which pays a higher dividend, GBAB or VTI?
GBAB yields 10.66% while VTI yields 1.07%, so GBAB currently pays the higher dividend yield.
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