TAFL vs VOO
AB Tax-Aware Long Municipal ETF 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 509 holdings.
Side-by-Side Comparison
| Metric | TAFL | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.03% | |
| AUM | $65M | $997.4B | |
| Dividend Yield | 4.15% | 1.08% | |
| Holdings | 156 | 509 | |
| YTD Return | +1.20% | +12.25% | |
| 1Y Return | +7.01% | +20.92% | |
| 3Y Return (annualized) | - | +21.79% | |
| 5Y Return (annualized) | - | +13.05% | |
| Volatility (annualized) | 4.8% | 14.1% | |
| Max Drawdown | -6.3% | -34.3% | |
| Fund Family | AllianceBernstein L.P. | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 13, 2023 | Sep 7, 2010 |
TAFL vs VOO Performance
AB Tax-Aware Long Municipal ETF (TAFL) is a ETF from AllianceBernstein L.P. and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year TAFL returned +7.01% while VOO returned +20.92%. Year to date, TAFL is up 1.20% versus a gain of 12.25% for VOO.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 4.8% for TAFL. 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 -6.3% for TAFL 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAFL charges 0.28% per year while VOO charges 0.03%. On a $10,000 position that is $28 vs $3 annually, a gap of $25 per year that compounds over a long holding period. On income, TAFL currently yields 4.15% against 1.08% for VOO.
Holdings Overlap
TAFL and VOO share 0 holdings out of 572 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, TAFL or VOO?
TAFL has an expense ratio of 0.28% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, TAFL or VOO?
Over the past year TAFL returned +7.01% vs +20.92% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), TAFL annualized +3.24% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, TAFL or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 4.8% for TAFL. Worst drawdown: TAFL -6.3% vs VOO -34.3%.
Should I hold both TAFL and VOO?
TAFL and VOO have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TAFL and VOO?
TAFL and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 572 unique securities.
Which pays a higher dividend, TAFL or VOO?
TAFL yields 4.15% while VOO yields 1.08%, so TAFL currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.