TAFM vs VOO
AB Tax-Aware Intermediate 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 505 holdings.
Side-by-Side Comparison
| Metric | TAFM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.03% | |
| AUM | $700M | $979.0B | |
| Dividend Yield | 2.79% | 1.09% | |
| Holdings | 560 | 509 | |
| YTD Return | +1.12% | +13.72% | |
| 1Y Return | +5.69% | +21.63% | |
| 3Y Return (annualized) | - | +21.55% | |
| 5Y Return (annualized) | - | +13.26% | |
| Volatility (annualized) | 4.0% | 14.1% | |
| Max Drawdown | -4.7% | -34.3% | |
| Fund Family | AllianceBernstein L.P. | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 13, 2023 | Sep 7, 2010 |
TAFM vs VOO Performance
AB Tax-Aware Intermediate Municipal ETF (TAFM) is a ETF from AllianceBernstein L.P. and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year TAFM returned +5.69% while VOO returned +21.63%. Year to date, TAFM is up 1.12% versus a gain of 13.72% for VOO.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 4.0% for TAFM. 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 -4.7% for TAFM 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAFM 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, TAFM currently yields 2.79% against 1.09% for VOO.
Holdings Overlap
TAFM and VOO share 0 holdings out of 726 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, TAFM or VOO?
TAFM 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, TAFM or VOO?
Over the past year TAFM returned +5.69% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), TAFM annualized +3.58% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, TAFM or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 4.0% for TAFM. Worst drawdown: TAFM -4.7% vs VOO -34.3%.
Should I hold both TAFM and VOO?
TAFM and VOO have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TAFM and VOO?
TAFM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 726 unique securities.
Which pays a higher dividend, TAFM or VOO?
TAFM yields 2.79% while VOO yields 1.09%, so TAFM currently pays the higher dividend yield.
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