BDEC vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricBDECVOOWinner
Expense Ratio0.79%0.03%
AUM$218M$979.0B
Dividend Yield0.00%1.09%
Holdings6509
YTD Return+10.14%+13.80%
1Y Return+19.10%+23.71%
3Y Return (annualized)+14.28%+21.50%
5Y Return (annualized)+10.26%+13.44%
Volatility (annualized)12.0%14.1%
Max Drawdown-25.6%-34.3%
Fund FamilyInnovator ETFs TrustVanguard (US)
CategoryAlternativeEquity
InceptionNov 29, 2019Sep 7, 2010

BDEC vs VOO Performance

Innovator US Equity Buffer ETF - December (BDEC) is a ETF from Innovator ETFs Trust and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year BDEC returned +19.10% while VOO returned +23.71%. Year to date, BDEC is up 10.14% versus a gain of 13.80% for VOO.

Over three years, BDEC compounded at +14.28% per year against +21.50% for VOO; over five years the annualized figures are +10.26% and +13.44% respectively. Across the full 7-year window we track, VOO has the edge at +13.58% annualized vs +11.56%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 12.0% for BDEC. 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 -25.6% for BDEC 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

BDEC charges 0.79% per year while VOO charges 0.03%. On a $10,000 position that is $79 vs $3 annually, a gap of $76 per year that compounds over a long holding period. On income, BDEC currently yields 0.00% against 1.09% for VOO.

Frequently Asked Questions

Which is cheaper, BDEC or VOO?

BDEC has an expense ratio of 0.79% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $76 per year of difference.

Which performed better, BDEC or VOO?

Over the past year BDEC returned +19.10% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (7 years), BDEC annualized +11.56% vs +13.58% for VOO. Past performance does not guarantee future results.

Which is riskier, BDEC or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 12.0% for BDEC. Worst drawdown: BDEC -25.6% vs VOO -34.3%.

Should I hold both BDEC and VOO?

BDEC and VOO have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

Which pays a higher dividend, BDEC or VOO?

BDEC yields 0.00% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.

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