BME vs VOO
BlackRock Health Sciences Trust vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. BME delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | BME | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.14% | 0.03% | |
| AUM | $595M | $997.4B | |
| Dividend Yield | 7.05% | 1.08% | |
| Holdings | 156 | 509 | |
| YTD Return | +12.08% | +14.27% | |
| 1Y Return | +32.53% | +21.79% | |
| 3Y Return (annualized) | +10.85% | +22.19% | |
| 5Y Return (annualized) | +4.65% | +13.28% | |
| Volatility (annualized) | 17.1% | 14.2% | |
| Max Drawdown | -44.6% | -34.3% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 31, 2005 | Sep 7, 2010 |
BME vs VOO Performance
BlackRock Health Sciences Trust (BME) is a ETF from BlackRock, Inc. (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year BME returned +32.53% while VOO returned +21.79%. Year to date, BME is up 12.08% versus a gain of 14.27% for VOO.
Over three years, BME compounded at +10.85% per year against +22.19% for VOO; over five years the annualized figures are +4.65% and +13.28% respectively. Across the full 16-year window we track, VOO has the edge at +13.59% annualized vs +4.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BME has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -44.6% for BME 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BME charges 1.14% per year while VOO charges 0.03%. On a $10,000 position that is $114 vs $3 annually, a gap of $111 per year that compounds over a long holding period. On income, BME currently yields 7.05% against 1.08% for VOO.
Holdings Overlap
BME and VOO share 44 holdings out of 598 unique holdings combined, representing a 8.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BME or VOO?
BME has an expense ratio of 1.14% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $111 per year of difference.
Which performed better, BME or VOO?
Over the past year BME returned +32.53% vs +21.79% for VOO, so BME leads on 1-year performance. Over the longest common window we track (16 years), BME annualized +4.45% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, BME or VOO?
BME has been the more volatile fund at 17.1% annualized versus 14.2% for VOO. Worst drawdown: BME -44.6% vs VOO -34.3%.
Should I hold both BME and VOO?
BME and VOO have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BME and VOO?
BME and VOO share 44 common holdings with a 8.4% weight overlap. Combined, they hold 598 unique securities.
Which pays a higher dividend, BME or VOO?
BME yields 7.05% while VOO yields 1.08%, so BME currently pays the higher dividend yield.
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