CAOS 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

MetricCAOSVOOWinner
Expense Ratio0.63%0.03%
AUM$719M$979.0B
Dividend Yield0.00%1.09%
Holdings17509
YTD Return+0.79%+13.80%
1Y Return+1.50%+23.71%
3Y Return (annualized)+3.48%+21.50%
5Y Return (annualized)-+13.44%
Volatility (annualized)2.0%14.1%
Max Drawdown-3.6%-34.3%
Fund FamilyAlpha ArchitectVanguard (US)
CategoryAlternativeEquity
InceptionMar 6, 2023Sep 7, 2010

CAOS vs VOO Performance

Alpha Architect Tail Risk ETF (CAOS) is a ETF from Alpha Architect and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year CAOS returned +1.50% while VOO returned +23.71%. Year to date, CAOS is up 0.79% versus a gain of 13.80% for VOO.

Over three years, CAOS compounded at +3.48% per year against +21.50% for VOO. Across the full 3-year window we track, VOO has the edge at +13.58% annualized vs +4.82%. 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 2.0% for CAOS. 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 -3.6% for CAOS 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

CAOS charges 0.63% per year while VOO charges 0.03%. On a $10,000 position that is $63 vs $3 annually, a gap of $60 per year that compounds over a long holding period. On income, CAOS currently yields 0.00% against 1.09% for VOO.

Frequently Asked Questions

Which is cheaper, CAOS or VOO?

CAOS has an expense ratio of 0.63% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $60 per year of difference.

Which performed better, CAOS or VOO?

Over the past year CAOS returned +1.50% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), CAOS annualized +4.82% vs +13.58% for VOO. Past performance does not guarantee future results.

Which is riskier, CAOS or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 2.0% for CAOS. Worst drawdown: CAOS -3.6% vs VOO -34.3%.

Should I hold both CAOS and VOO?

CAOS and VOO have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, CAOS or VOO?

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

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