TAFL vs VTI
AB Tax-Aware Long Municipal ETF vs Vanguard Morningstar 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 | TAFL | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.03% | |
| AUM | $65M | $666.9B | |
| Dividend Yield | 4.15% | 1.07% | |
| Holdings | 156 | 3,543 | |
| YTD Return | +1.08% | +13.14% | |
| 1Y Return | +7.11% | +22.35% | |
| 3Y Return (annualized) | - | +21.83% | |
| 5Y Return (annualized) | - | +12.01% | |
| Volatility (annualized) | 4.8% | 15.3% | |
| Max Drawdown | -6.3% | -56.6% | |
| Fund Family | AllianceBernstein L.P. | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 13, 2023 | May 24, 2001 |
TAFL vs VTI Performance
AB Tax-Aware Long Municipal ETF (TAFL) is a ETF from AllianceBernstein L.P. and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year TAFL returned +7.11% while VTI returned +22.35%. Year to date, TAFL is up 1.08% versus a gain of 13.14% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAFL charges 0.28% per year while VTI 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 1.07% for VTI.
Holdings Overlap
TAFL and VTI share 0 holdings out of 2854 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 VTI?
TAFL has an expense ratio of 0.28% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, TAFL or VTI?
Over the past year TAFL returned +7.11% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), TAFL annualized +3.19% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, TAFL or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 4.8% for TAFL. Worst drawdown: TAFL -6.3% vs VTI -56.6%.
Should I hold both TAFL and VTI?
TAFL and VTI have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TAFL and VTI?
TAFL and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2854 unique securities.
Which pays a higher dividend, TAFL or VTI?
TAFL yields 4.15% while VTI yields 1.07%, so TAFL currently pays the higher dividend yield.
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