TAXS vs VOO
Northern Trust Short Term Tax-Exempt Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. TAXS offers more diversification with 1,098 holdings.
Side-by-Side Comparison
| Metric | TAXS | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $131M | $997.4B | |
| Dividend Yield | 2.04% | 1.08% | |
| Holdings | 1,098 | 509 | |
| YTD Return | +1.19% | +12.68% | |
| 1Y Return | +2.47% | +21.87% | |
| 3Y Return (annualized) | - | +22.06% | |
| 5Y Return (annualized) | - | +12.95% | |
| Volatility (annualized) | 1.4% | 14.1% | |
| Max Drawdown | -0.8% | -34.3% | |
| Fund Family | Northern Trust Asset Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 1, 2025 | Sep 7, 2010 |
TAXS vs VOO Performance
Northern Trust Short Term Tax-Exempt Bond ETF (TAXS) is a ETF from Northern Trust Asset Management and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year TAXS returned +2.47% while VOO returned +21.87%. Year to date, TAXS is up 1.19% versus a gain of 12.68% for VOO.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 1.4% for TAXS. 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 -0.8% for TAXS 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAXS charges 0.05% per year while VOO charges 0.03%. On a $10,000 position that is $5 vs $3 annually, a gap of $2 per year that compounds over a long holding period. On income, TAXS currently yields 2.04% against 1.08% for VOO.
Holdings Overlap
TAXS and VOO share 0 holdings out of 863 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, TAXS or VOO?
TAXS has an expense ratio of 0.05% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, TAXS or VOO?
Over the past year TAXS returned +2.47% vs +21.87% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (1 years), TAXS annualized +2.50% vs +13.47% for VOO. Past performance does not guarantee future results.
Which is riskier, TAXS or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 1.4% for TAXS. Worst drawdown: TAXS -0.8% vs VOO -34.3%.
Should I hold both TAXS and VOO?
TAXS and VOO have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TAXS and VOO?
TAXS and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 863 unique securities.
Which pays a higher dividend, TAXS or VOO?
TAXS yields 2.04% while VOO yields 1.08%, so TAXS currently pays the higher dividend yield.
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