CMBS vs VOO

CMBS vs VOO

Which is better, CMBS or VOO?

VOO has been ahead.

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VOOHigher Returns: VOO

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricCMBSVOO
Expense Ratio0.25%0.03%Best
AUM$468M$997.4B
Dividend Yield3.62%1.04%
Holdings466509
YTD Return-0.45%+11.98%Best
1Y Return+0.80%+16.45%Best
3Y Return (annualized)+5.35%+21.19%Best
5Y Return (annualized)+0.52%+12.95%Best
Volatility (annualized)3.9%Best14.0%
Max Drawdown-16.4%Best-34.3%
$10,000 over 5 years$10,263$18,384Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
Style-Large Cap Blend
InceptionFeb 14, 2012Sep 7, 2010

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Feb 16, 2012 to Sep 14, 2026 (14.6 years).

CMBS vs VOO growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

CMBS vs VOO Performance

iShares CMBS ETF (CMBS) is an ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year CMBS returned +0.80% while VOO returned +16.45%. Year to date, CMBS is down 0.45% versus a gain of 11.98% for VOO.

Over three years, CMBS compounded at +5.35% per year against +21.19% for VOO; over five years the annualized figures are +0.52% and +12.95% respectively. Across the full 15-year window we track, VOO has the edge at +13.17% annualized vs +0.78%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.0% compared with 3.9% for CMBS. 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 -16.4% for CMBS and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.29. They move largely independently of each other.

Fees and Cost Over Time

CMBS charges 0.25% per year while VOO charges 0.03%. On a $10,000 position that is $25 vs $3 annually, a gap of $22 per year that compounds over a long holding period. On income, CMBS currently yields 3.62% against 1.04% for VOO.

Holdings Overlap

We hold position weights for 419 holdings in CMBS and 494 in VOO, totalling 89.0% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 419 positions we hold weights for in CMBS and 494 in VOO, against full books of 466 and 509.

You are not choosing between two funds in isolation.

Whichever of CMBS and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

CMBSVOO

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, CMBS or VOO?

CMBS has an expense ratio of 0.25% while VOO charges 0.03%. VOO is the cheaper option, by $22 a year on a $10,000 investment.

Which performed better, CMBS or VOO?

Over the past year CMBS returned +0.80% vs +16.45% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (15 years), CMBS annualized +0.78% vs +13.17% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, CMBS or VOO?

VOO has been the more volatile fund at 14.0% annualized versus 3.9% for CMBS. Worst drawdown: CMBS -16.4% vs VOO -34.3%.

Should I hold both CMBS and VOO?

CMBS and VOO have a monthly-return correlation of 0.29, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, CMBS or VOO?

CMBS yields 3.62% while VOO yields 1.04%, so CMBS currently pays the higher dividend yield.

Is VOO better than CMBS?

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.