TAXT vs VOO
Northern Trust Tax-Exempt Bond 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 | TAXT | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $60M | $979.0B | |
| Dividend Yield | 2.54% | 1.09% | |
| Holdings | 441 | 509 | |
| YTD Return | +0.40% | +13.79% | |
| 1Y Return | +4.56% | +23.01% | |
| 3Y Return (annualized) | - | +21.78% | |
| 5Y Return (annualized) | - | +13.39% | |
| Volatility (annualized) | 3.8% | 14.1% | |
| Max Drawdown | -2.5% | -34.3% | |
| Fund Family | Northern Trust Asset Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 28, 2025 | Sep 7, 2010 |
TAXT vs VOO Performance
Northern Trust Tax-Exempt Bond ETF (TAXT) 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 TAXT returned +4.56% while VOO returned +23.01%. Year to date, TAXT is up 0.40% versus a gain of 13.79% for VOO.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 3.8% for TAXT. 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 -2.5% for TAXT 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAXT 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, TAXT currently yields 2.54% against 1.09% for VOO.
Holdings Overlap
TAXT and VOO share 0 holdings out of 687 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, TAXT or VOO?
TAXT 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, TAXT or VOO?
Over the past year TAXT returned +4.56% vs +23.01% for VOO, so VOO leads on 1-year performance. Past performance does not guarantee future results.
Which is riskier, TAXT or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 3.8% for TAXT. Worst drawdown: TAXT -2.5% vs VOO -34.3%.
Should I hold both TAXT and VOO?
TAXT and VOO 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 TAXT and VOO?
TAXT and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 687 unique securities.
Which pays a higher dividend, TAXT or VOO?
TAXT yields 2.54% while VOO yields 1.09%, so TAXT currently pays the higher dividend yield.
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