Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. BSMS offers more diversification with 621 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: BSMS

Side-by-Side Comparison

MetricBSMSVOOWinner
Expense Ratio0.18%0.03%
AUM$310M$979.0B
Dividend Yield2.77%1.09%
Holdings2,109509
YTD Return+1.19%+13.80%
1Y Return+3.24%+23.71%
3Y Return (annualized)+3.07%+21.50%
5Y Return (annualized)-0.04%+13.44%
Volatility (annualized)5.4%14.1%
Max Drawdown-15.0%-34.3%
Fund FamilyInvesco (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionSep 25, 2019Sep 7, 2010

BSMS vs VOO Performance

Invesco BulletShares 2028 Municipal Bond ETF (BSMS) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year BSMS returned +3.24% while VOO returned +23.71%. Year to date, BSMS is up 1.19% versus a gain of 13.80% for VOO.

Over three years, BSMS compounded at +3.07% per year against +21.50% for VOO; over five years the annualized figures are -0.04% and +13.44% respectively. Across the full 7-year window we track, VOO has the edge at +13.58% annualized vs +0.88%. 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 5.4% for BSMS. 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 -15.0% for BSMS 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BSMS charges 0.18% per year while VOO charges 0.03%. On a $10,000 position that is $18 vs $3 annually, a gap of $15 per year that compounds over a long holding period. On income, BSMS currently yields 2.77% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

BSMS and VOO share 0 holdings out of 1126 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, BSMS or VOO?

BSMS has an expense ratio of 0.18% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $15 per year of difference.

Which performed better, BSMS or VOO?

Over the past year BSMS returned +3.24% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (7 years), BSMS annualized +0.88% vs +13.58% for VOO. Past performance does not guarantee future results.

Which is riskier, BSMS or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 5.4% for BSMS. Worst drawdown: BSMS -15.0% vs VOO -34.3%.

Should I hold both BSMS and VOO?

BSMS and VOO have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BSMS and VOO?

BSMS and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1126 unique securities.

Which pays a higher dividend, BSMS or VOO?

BSMS yields 2.77% while VOO yields 1.09%, so BSMS currently pays the higher dividend yield.

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