MHD vs VOO
BlackRock MuniHoldings Fund, Inc vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | MHD | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 2.31% | 0.03% | |
| AUM | $2.2B | $979.0B | |
| Dividend Yield | 5.52% | 1.09% | |
| Holdings | 422 | 509 | |
| YTD Return | +2.79% | +13.44% | |
| 1Y Return | +9.77% | +22.62% | |
| 3Y Return (annualized) | +6.39% | +21.47% | |
| 5Y Return (annualized) | -2.62% | +13.27% | |
| Volatility (annualized) | 13.4% | 14.1% | |
| Max Drawdown | -52.7% | -34.3% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | May 2, 1997 | Sep 7, 2010 |
MHD vs VOO Performance
BlackRock MuniHoldings Fund, Inc (MHD) is a ETF from BlackRock, Inc. (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year MHD returned +9.77% while VOO returned +22.62%. Year to date, MHD is up 2.79% versus a gain of 13.44% for VOO.
Over three years, MHD compounded at +6.39% per year against +21.47% for VOO; over five years the annualized figures are -2.62% and +13.27% respectively. Across the full 16-year window we track, VOO has the edge at +13.55% annualized vs +0.00%. 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 13.4% for MHD. 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 -52.7% for MHD 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MHD charges 2.31% per year while VOO charges 0.03%. On a $10,000 position that is $231 vs $3 annually, a gap of $228 per year that compounds over a long holding period. On income, MHD currently yields 5.52% against 1.09% for VOO.
Holdings Overlap
MHD and VOO share 0 holdings out of 697 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, MHD or VOO?
MHD has an expense ratio of 2.31% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $228 per year of difference.
Which performed better, MHD or VOO?
Over the past year MHD returned +9.77% vs +22.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), MHD annualized +0.00% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, MHD or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 13.4% for MHD. Worst drawdown: MHD -52.7% vs VOO -34.3%.
Should I hold both MHD and VOO?
MHD and VOO have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MHD and VOO?
MHD and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 697 unique securities.
Which pays a higher dividend, MHD or VOO?
MHD yields 5.52% while VOO yields 1.09%, so MHD currently pays the higher dividend yield.
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