BTO vs VOO
John Hancock Financial Opportunities Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | BTO | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 2.96% | 0.03% | |
| AUM | $709M | $997.4B | |
| Dividend Yield | 6.18% | 1.08% | |
| Holdings | 184 | 509 | |
| YTD Return | +17.11% | +12.68% | |
| 1Y Return | +19.55% | +21.87% | |
| 3Y Return (annualized) | +24.15% | +22.06% | |
| 5Y Return (annualized) | +5.83% | +12.95% | |
| Volatility (annualized) | 31.1% | 14.1% | |
| Max Drawdown | -95.5% | -34.3% | |
| Fund Family | John Hancock Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 18, 1994 | Sep 7, 2010 |
BTO vs VOO Performance
John Hancock Financial Opportunities Fund (BTO) is a ETF from John Hancock Investment Management and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year BTO returned +19.55% while VOO returned +21.87%. Year to date, BTO is up 17.11% versus a gain of 12.68% for VOO.
Over three years, BTO compounded at +24.15% per year against +22.06% for VOO; over five years the annualized figures are +5.83% and +12.95% respectively. Across the full 16-year window we track, VOO has the edge at +13.47% annualized vs -4.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BTO has been the more volatile fund, with annualized monthly volatility of 31.1% compared with 14.1% 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 -95.5% for BTO 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BTO charges 2.96% per year while VOO charges 0.03%. On a $10,000 position that is $296 vs $3 annually, a gap of $293 per year that compounds over a long holding period. On income, BTO currently yields 6.18% against 1.08% for VOO.
Holdings Overlap
BTO and VOO share 9 holdings out of 630 unique holdings combined, representing a 0.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BTO or VOO?
BTO has an expense ratio of 2.96% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $293 per year of difference.
Which performed better, BTO or VOO?
Over the past year BTO returned +19.55% vs +21.87% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), BTO annualized -4.15% vs +13.47% for VOO. Past performance does not guarantee future results.
Which is riskier, BTO or VOO?
BTO has been the more volatile fund at 31.1% annualized versus 14.1% for VOO. Worst drawdown: BTO -95.5% vs VOO -34.3%.
Should I hold both BTO and VOO?
BTO and VOO have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BTO and VOO?
BTO and VOO share 9 common holdings with a 0.6% weight overlap. Combined, they hold 630 unique securities.
Which pays a higher dividend, BTO or VOO?
BTO yields 6.18% while VOO yields 1.08%, so BTO currently pays the higher dividend yield.
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