AAXJ vs VOO
iShares MSCI All Country Asia ex Japan ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. AAXJ delivered stronger 1-year returns. AAXJ offers more diversification with 956 holdings.
Side-by-Side Comparison
| Metric | AAXJ | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.03% | |
| AUM | $3.7B | $979.0B | |
| Dividend Yield | 1.29% | 1.09% | |
| Holdings | 956 | 509 | |
| YTD Return | +21.13% | +14.48% | |
| 1Y Return | +35.18% | +22.02% | |
| 3Y Return (annualized) | +23.00% | +21.80% | |
| 5Y Return (annualized) | +7.78% | +13.36% | |
| Volatility (annualized) | 20.5% | 14.2% | |
| Max Drawdown | -49.4% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 13, 2008 | Sep 7, 2010 |
AAXJ vs VOO Performance
iShares MSCI All Country Asia ex Japan ETF (AAXJ) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year AAXJ returned +35.18% while VOO returned +22.02%. Year to date, AAXJ is up 21.13% versus a gain of 14.48% for VOO.
Over three years, AAXJ compounded at +23.00% per year against +21.80% for VOO; over five years the annualized figures are +7.78% and +13.36% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs +5.33%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AAXJ has been the more volatile fund, with annualized monthly volatility of 20.5% compared with 14.2% for VOO. 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 -49.4% for AAXJ 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AAXJ charges 0.72% per year while VOO charges 0.03%. On a $10,000 position that is $72 vs $3 annually, a gap of $69 per year that compounds over a long holding period. On income, AAXJ currently yields 1.29% against 1.09% for VOO.
Holdings Overlap
AAXJ and VOO share 1 holdings out of 1324 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in AAXJ | Weight in VOO | Difference |
|---|---|---|---|
| HAL | 0.07% | 0.04% | 0.03% |
Frequently Asked Questions
Which is cheaper, AAXJ or VOO?
AAXJ has an expense ratio of 0.72% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, AAXJ or VOO?
Over the past year AAXJ returned +35.18% vs +22.02% for VOO, so AAXJ leads on 1-year performance. Over the longest common window we track (16 years), AAXJ annualized +5.33% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, AAXJ or VOO?
AAXJ has been the more volatile fund at 20.5% annualized versus 14.2% for VOO. Worst drawdown: AAXJ -49.4% vs VOO -34.3%.
Should I hold both AAXJ and VOO?
AAXJ and VOO have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AAXJ and VOO?
AAXJ and VOO share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1324 unique securities.
Which pays a higher dividend, AAXJ or VOO?
AAXJ yields 1.29% while VOO yields 1.09%, so AAXJ currently pays the higher dividend yield.
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