TAXT vs VTI
Northern Trust Tax-Exempt Bond ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | TAXT | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.03% | |
| AUM | $60M | $663.5B | |
| Dividend Yield | 2.54% | 1.07% | |
| Holdings | 441 | 3,543 | |
| YTD Return | +0.45% | +13.87% | |
| 1Y Return | +4.61% | +23.31% | |
| 3Y Return (annualized) | - | +21.17% | |
| 5Y Return (annualized) | - | +12.23% | |
| Volatility (annualized) | 3.8% | 15.3% | |
| Max Drawdown | -2.5% | -56.6% | |
| Fund Family | Northern Trust Asset Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 28, 2025 | May 24, 2001 |
TAXT vs VTI Performance
Northern Trust Tax-Exempt Bond ETF (TAXT) is a ETF from Northern Trust Asset Management and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year TAXT returned +4.61% while VTI returned +23.31%. Year to date, TAXT is up 0.45% versus a gain of 13.87% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAXT charges 0.05% per year while VTI 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 1.07% for VTI.
Holdings Overlap
TAXT and VTI share 0 holdings out of 2965 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 VTI?
TAXT has an expense ratio of 0.05% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, TAXT or VTI?
Over the past year TAXT returned +4.61% vs +23.31% for VTI, so VTI leads on 1-year performance. Past performance does not guarantee future results.
Which is riskier, TAXT or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 3.8% for TAXT. Worst drawdown: TAXT -2.5% vs VTI -56.6%.
Should I hold both TAXT and VTI?
TAXT and VTI 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 TAXT and VTI?
TAXT and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2965 unique securities.
Which pays a higher dividend, TAXT or VTI?
TAXT yields 2.54% while VTI yields 1.07%, so TAXT currently pays the higher dividend yield.
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