TAFI vs VOO
AB Tax Aware Short Duration Municipal ETF vs Vanguard S&P 500 ETF
Which is better, TAFI or VOO?
Municipal Bond against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | TAFI | VOO |
|---|---|---|
| Expense Ratio | 0.27% | 0.03%Best |
| AUM | $1.4B | $997.4B |
| Dividend Yield | 3.12% | 1.04% |
| Holdings | 711 | 509 |
| YTD Return | +0.39% | +14.14%Best |
| 1Y Return | +0.87% | +17.31%Best |
| 3Y Return (annualized) | +3.43% | +23.16%Best |
| 5Y Return (annualized) | - | +13.85% |
| Volatility (annualized) | 2.3%Best | 13.2% |
| Max Drawdown | -1.9%Best | -18.7% |
| $10,000 over 4 years | $11,264 | $21,140Best |
| Fund Family | AllianceBernstein L.P. | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Blend |
| Inception | Sep 13, 2022 | Sep 7, 2010 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4 years row, are measured over the window both funds cover: Sep 16, 2022 to Sep 21, 2026 (4 years).
TAFI vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4 years both funds cover.
TAFI vs VOO Performance
AB Tax Aware Short Duration Municipal ETF (TAFI) is an ETF from AllianceBernstein L.P. and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year TAFI returned +0.87% while VOO returned +17.31%. Year to date, TAFI is up 0.39% versus a gain of 14.14% for VOO.
Over three years, TAFI compounded at +3.43% per year against +23.16% for VOO. Across the full 4-year window we track, VOO has the edge at +20.58% annualized vs +3.02%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 13.2% compared with 2.3% for TAFI. 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 -1.9% for TAFI and -18.7% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.58. They move together some of the time, and apart the rest.
Fees and Cost Over Time
TAFI charges 0.27% per year while VOO charges 0.03%. On a $10,000 position that is $27 vs $3 annually, a gap of $24 per year that compounds over a long holding period. On income, TAFI currently yields 3.12% against 1.04% for VOO.
Holdings Overlap
At least 0.3% of VOO's money is in holdings TAFI also owns.
Stated as a floor: for TAFI, our book for it covers 25.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 180 positions we hold weights for in TAFI and 494 in VOO, against full books of 711 and 509.
Top Shared Holdings
| Stock | Weight in TAFI | Weight in VOO | Difference |
|---|---|---|---|
| CCitigroup Inc V/R /Perp | 0.01% | 0.34% | 0.33% |
You are not choosing between two funds in isolation.
Whichever of TAFI and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, TAFI or VOO?
TAFI has an expense ratio of 0.27% while VOO charges 0.03%. VOO is the cheaper option, by $24 a year on a $10,000 investment.
Which performed better, TAFI or VOO?
Over the past year TAFI returned +0.87% vs +17.31% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (4 years), TAFI annualized +3.02% vs +20.58% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, TAFI or VOO?
VOO has been the more volatile fund at 13.2% annualized versus 2.3% for TAFI. Worst drawdown: TAFI -1.9% vs VOO -18.7%.
Should I hold both TAFI and VOO?
TAFI and VOO have a monthly-return correlation of 0.58, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, TAFI or VOO?
TAFI yields 3.12% while VOO yields 1.04%, so TAFI currently pays the higher dividend yield.
Is VOO better than TAFI?
VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.