BEMB 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

MetricBEMBVOOWinner
Expense Ratio0.15%0.03%
AUM$42M$979.0B
Dividend Yield6.07%1.09%
Holdings259509
YTD Return-0.49%+13.80%
1Y Return+4.06%+23.71%
3Y Return (annualized)+7.39%+21.50%
5Y Return (annualized)-+13.44%
Volatility (annualized)6.0%14.1%
Max Drawdown-6.2%-34.3%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionFeb 22, 2023Sep 7, 2010

BEMB vs VOO Performance

iShares J.P. Morgan Broad USD Emerging Markets Bond ETF (BEMB) 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 BEMB returned +4.06% while VOO returned +23.71%. Year to date, BEMB is down 0.49% versus a gain of 13.80% for VOO.

Over three years, BEMB compounded at +7.39% per year against +21.50% for VOO. Across the full 3-year window we track, VOO has the edge at +13.58% annualized vs +7.43%. 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 6.0% for BEMB. 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 -6.2% for BEMB 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 0.74. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BEMB charges 0.15% per year while VOO charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, BEMB currently yields 6.07% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

BEMB and VOO share 0 holdings out of 614 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, BEMB or VOO?

BEMB has an expense ratio of 0.15% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $12 per year of difference.

Which performed better, BEMB or VOO?

Over the past year BEMB returned +4.06% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), BEMB annualized +7.43% vs +13.58% for VOO. Past performance does not guarantee future results.

Which is riskier, BEMB or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 6.0% for BEMB. Worst drawdown: BEMB -6.2% vs VOO -34.3%.

Should I hold both BEMB and VOO?

BEMB and VOO have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BEMB and VOO?

BEMB and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 614 unique securities.

Which pays a higher dividend, BEMB or VOO?

BEMB yields 6.07% while VOO yields 1.09%, so BEMB currently pays the higher dividend yield.

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