TAFM vs VTI
AB Tax-Aware Intermediate 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 | TAFM | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.03% | |
| AUM | $741M | $666.9B | |
| Dividend Yield | 3.68% | 1.07% | |
| Holdings | 672 | 3,543 | |
| YTD Return | +1.31% | +14.82% | |
| 1Y Return | +5.85% | +22.43% | |
| 3Y Return (annualized) | - | +21.93% | |
| 5Y Return (annualized) | - | +12.34% | |
| Volatility (annualized) | 4.0% | 15.4% | |
| Max Drawdown | -4.7% | -56.6% | |
| Fund Family | AllianceBernstein L.P. | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 13, 2023 | May 24, 2001 |
TAFM vs VTI Performance
AB Tax-Aware Intermediate Municipal ETF (TAFM) 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 TAFM returned +5.85% while VTI returned +22.43%. Year to date, TAFM is up 1.31% versus a gain of 14.82% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAFM 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, TAFM currently yields 3.68% against 1.07% for VTI.
Holdings Overlap
TAFM and VTI share 0 holdings out of 3008 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 VTI?
TAFM 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, TAFM or VTI?
Over the past year TAFM returned +5.85% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), TAFM annualized +3.65% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, TAFM or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 4.0% for TAFM. Worst drawdown: TAFM -4.7% vs VTI -56.6%.
Should I hold both TAFM and VTI?
TAFM and VTI have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TAFM and VTI?
TAFM and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3008 unique securities.
Which pays a higher dividend, TAFM or VTI?
TAFM yields 3.68% while VTI yields 1.07%, so TAFM currently pays the higher dividend yield.
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