NBB vs VTI
Nuveen Taxable Municipal Income Fund 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 2783 holdings.
Side-by-Side Comparison
| Metric | NBB | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 2.10% | 0.03% | |
| AUM | - | $663.5B | |
| Dividend Yield | 7.17% | 1.07% | |
| Holdings | 155 | 3,543 | |
| YTD Return | +1.85% | +14.16% | |
| 1Y Return | +4.67% | +23.62% | |
| 3Y Return (annualized) | +8.42% | +21.43% | |
| 5Y Return (annualized) | -1.16% | +12.33% | |
| Volatility (annualized) | 11.1% | 15.3% | |
| Max Drawdown | -33.5% | -56.6% | |
| Fund Family | Nuveen | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 28, 2010 | May 24, 2001 |
NBB vs VTI Performance
Nuveen Taxable Municipal Income Fund (NBB) is a ETF from Nuveen and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year NBB returned +4.67% while VTI returned +23.62%. Year to date, NBB is up 1.85% versus a gain of 14.16% for VTI.
Over three years, NBB compounded at +8.42% per year against +21.43% for VTI; over five years the annualized figures are -1.16% and +12.33% respectively. Across the full 16-year window we track, VTI has the edge at +8.14% annualized vs +0.77%. 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 11.1% for NBB. 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 -33.5% for NBB 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NBB charges 2.10% per year while VTI charges 0.03%. On a $10,000 position that is $210 vs $3 annually, a gap of $207 per year that compounds over a long holding period. On income, NBB currently yields 7.17% against 1.07% for VTI.
Holdings Overlap
NBB and VTI share 0 holdings out of 2784 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, NBB or VTI?
NBB has an expense ratio of 2.10% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $207 per year of difference.
Which performed better, NBB or VTI?
Over the past year NBB returned +4.67% vs +23.62% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (16 years), NBB annualized +0.77% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, NBB or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 11.1% for NBB. Worst drawdown: NBB -33.5% vs VTI -56.6%.
Should I hold both NBB and VTI?
NBB and VTI have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NBB and VTI?
NBB and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2784 unique securities.
Which pays a higher dividend, NBB or VTI?
NBB yields 7.17% while VTI yields 1.07%, so NBB currently pays the higher dividend yield.
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