ALAI vs VOO

ALAI vs VOO

Which is better, ALAI or VOO?

ALAI has been ahead.

VOO has a lower expense ratio. ALAI led over 1Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 54.0%.

Lower Fees: VOOHigher Returns: ALAILess Concentrated: VOO

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricALAIVOO
Expense Ratio0.58%0.03%Best
AUM$1.1B$997.4B
Dividend Yield1.21%1.04%
Holdings72509
YTD Return+24.10%Best+12.25%
1Y Return+25.13%Best+17.03%
3Y Return (annualized)-+21.25%
5Y Return (annualized)-+13.08%
Volatility (annualized)25.5%11.8%Best
Max Drawdown-29.4%-18.7%Best
$10,000 over 2.5 years$23,320Best$15,260
Top 10 Weight54.0%37.6%Best
Fund FamilyAlgerVanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Blend
InceptionApr 4, 2024Sep 7, 2010

Volatility and max drawdown, and the $10,000 over 2.5 years row, are measured over the window both funds cover: Apr 5, 2024 to Sep 17, 2026 (2.5 years).

ALAI vs VOO growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.5 years both funds cover.

ALAI vs VOO Performance

Alger AI Enablers & Adopters ETF (ALAI) is an ETF from Alger and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year ALAI returned +25.13% while VOO returned +17.03%. Year to date, ALAI is up 24.10% versus a gain of 12.25% for VOO.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ALAI has been the more volatile fund, with annualized monthly volatility of 25.5% compared with 11.8% 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 -29.4% for ALAI and -18.7% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

ALAI charges 0.58% per year while VOO charges 0.03%. On a $10,000 position that is $58 vs $3 annually, a gap of $55 per year that compounds over a long holding period. On income, ALAI currently yields 1.21% against 1.04% for VOO.

Holdings Overlap

ALAI already in VOO60.6%
VOO already in ALAI38.1%

60.6% of ALAI's money is in holdings VOO also owns. 38.1% of VOO's money is in holdings ALAI also owns.

The two portfolios partly overlap.

25 positions in common, counted across the 61 positions we hold weights for in ALAI and 494 in VOO, against full books of 72 and 509.

What only one of them owns

Our book lists 462 positions for VOO that do not appear in our book for ALAI (61.1% of the fund), and 25 for ALAI that do not appear in VOO (21.7%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in ALAIWeight in VOODifference
NVDANvidia Corp14.70%7.55%7.15%
MSFTMicrosoft Corp8.23%5.36%2.87%
AMZNAmazon.Com Inc6.23%4.13%2.10%
AAPLApple, Inc2.08%7.05%4.97%
GOOGAlphabet Inc3.72%2.62%1.10%
AVGOBroadcom Inc3.22%2.86%0.36%
METAMeta Platforms Inc3.60%1.90%1.70%
MUMicron Technology, Inc.2.18%1.44%0.74%
STXSeagate Technology Holdings Plc3.13%0.30%2.83%
TSLATesla Inc1.69%1.36%0.33%

60.6% of ALAI is already inside VOO.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

ALAIVOO

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, ALAI or VOO?

ALAI has an expense ratio of 0.58% while VOO charges 0.03%. VOO is the cheaper option, by $55 a year on a $10,000 investment.

Which performed better, ALAI or VOO?

Over the past year ALAI returned +25.13% vs +17.03% for VOO, so ALAI leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, ALAI or VOO?

ALAI has been the more volatile fund at 25.5% annualized versus 11.8% for VOO. Worst drawdown: ALAI -29.4% vs VOO -18.7%.

Should I hold both ALAI and VOO?

ALAI and VOO have a monthly-return correlation of 0.88, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between ALAI and VOO?

60.6% of ALAI's money is in holdings VOO also owns. 38.1% of VOO's is in holdings ALAI also owns. They hold 25 positions in common, counted across the 61 positions we hold weights for in ALAI and 494 in VOO.

Which pays a higher dividend, ALAI or VOO?

ALAI yields 1.21% while VOO yields 1.04%, so ALAI currently pays the higher dividend yield.

Is VOO better than ALAI?

VOO has a lower expense ratio. ALAI led over 1Y and the full window. VOO is less concentrated, with 37.6% of the fund in its ten largest positions against 54.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.