MHD vs VTI
BlackRock MuniHoldings Fund, Inc vs Vanguard 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 | MHD | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 2.31% | 0.03% | |
| AUM | $2.2B | $663.5B | |
| Dividend Yield | 5.52% | 1.07% | |
| Holdings | 422 | 3,543 | |
| YTD Return | +3.59% | +14.96% | |
| 1Y Return | +10.43% | +22.39% | |
| 3Y Return (annualized) | +6.65% | +21.51% | |
| 5Y Return (annualized) | -2.39% | +12.36% | |
| Volatility (annualized) | 13.4% | 15.4% | |
| Max Drawdown | -52.7% | -56.6% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | May 2, 1997 | May 24, 2001 |
MHD vs VTI Performance
BlackRock MuniHoldings Fund, Inc (MHD) is a ETF from BlackRock, Inc. (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year MHD returned +10.43% while VTI returned +22.39%. Year to date, MHD is up 3.59% versus a gain of 14.96% for VTI.
Over three years, MHD compounded at +6.65% per year against +21.51% for VTI; over five years the annualized figures are -2.39% and +12.36% respectively. Across the full 25-year window we track, VTI has the edge at +8.16% annualized vs +0.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MHD charges 2.31% per year while VTI 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 1.07% for VTI.
Holdings Overlap
MHD and VTI share 0 holdings out of 2975 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 VTI?
MHD has an expense ratio of 2.31% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $228 per year of difference.
Which performed better, MHD or VTI?
Over the past year MHD returned +10.43% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), MHD annualized +0.03% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, MHD or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 13.4% for MHD. Worst drawdown: MHD -52.7% vs VTI -56.6%.
Should I hold both MHD and VTI?
MHD and VTI have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MHD and VTI?
MHD and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2975 unique securities.
Which pays a higher dividend, MHD or VTI?
MHD yields 5.52% while VTI yields 1.07%, so MHD currently pays the higher dividend yield.
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