DIVY vs VOO
Sound Equity Dividend Income ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. DIVY delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | DIVY | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.03% | |
| AUM | $30M | $997.4B | |
| Dividend Yield | 3.05% | 1.08% | |
| Holdings | 37 | 509 | |
| YTD Return | +18.92% | +12.87% | |
| 1Y Return | +22.66% | +21.15% | |
| 3Y Return (annualized) | +10.38% | +20.93% | |
| 5Y Return (annualized) | +8.31% | +12.76% | |
| Volatility (annualized) | 15.0% | 14.1% | |
| Max Drawdown | -18.3% | -34.3% | |
| Fund Family | Sound Income Strategies | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 30, 2020 | Sep 7, 2010 |
DIVY vs VOO Performance
Sound Equity Dividend Income ETF (DIVY) is a ETF from Sound Income Strategies and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year DIVY returned +22.66% while VOO returned +21.15%. Year to date, DIVY is up 18.92% versus a gain of 12.87% for VOO.
Over three years, DIVY compounded at +10.38% per year against +20.93% for VOO; over five years the annualized figures are +8.31% and +12.76% respectively. Across the full 6-year window we track, VOO has the edge at +13.46% annualized vs +12.18%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DIVY has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -18.3% for DIVY 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
DIVY charges 0.45% per year while VOO charges 0.03%. On a $10,000 position that is $45 vs $3 annually, a gap of $42 per year that compounds over a long holding period. On income, DIVY currently yields 3.05% against 1.08% for VOO.
Holdings Overlap
DIVY and VOO share 22 holdings out of 519 unique holdings combined, representing a 3.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DIVY or VOO?
DIVY has an expense ratio of 0.45% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, DIVY or VOO?
Over the past year DIVY returned +22.66% vs +21.15% for VOO, so DIVY leads on 1-year performance. Over the longest common window we track (6 years), DIVY annualized +12.18% vs +13.46% for VOO. Past performance does not guarantee future results.
Which is riskier, DIVY or VOO?
DIVY has been the more volatile fund at 15.0% annualized versus 14.1% for VOO. Worst drawdown: DIVY -18.3% vs VOO -34.3%.
Should I hold both DIVY and VOO?
DIVY 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 DIVY and VOO?
DIVY and VOO share 22 common holdings with a 3.6% weight overlap. Combined, they hold 519 unique securities.
Which pays a higher dividend, DIVY or VOO?
DIVY yields 3.05% while VOO yields 1.08%, so DIVY currently pays the higher dividend yield.
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