DMO vs VOO
Western Asset Mortgage Opportunity Fund Inc. 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 | DMO | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 2.10% | 0.03% | |
| AUM | $128M | $997.4B | |
| Dividend Yield | 13.24% | 1.08% | |
| Holdings | 396 | 509 | |
| YTD Return | +3.66% | +14.27% | |
| 1Y Return | +0.78% | +21.79% | |
| 3Y Return (annualized) | +12.22% | +22.19% | |
| 5Y Return (annualized) | +3.51% | +13.28% | |
| Volatility (annualized) | 14.5% | 14.2% | |
| Max Drawdown | -60.2% | -34.3% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 24, 2010 | Sep 7, 2010 |
DMO vs VOO Performance
Western Asset Mortgage Opportunity Fund Inc. (DMO) is a ETF from Franklin Templeton Investments (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year DMO returned +0.78% while VOO returned +21.79%. Year to date, DMO is up 3.66% versus a gain of 14.27% for VOO.
Over three years, DMO compounded at +12.22% per year against +22.19% for VOO; over five years the annualized figures are +3.51% and +13.28% respectively. Across the full 16-year window we track, VOO has the edge at +13.59% annualized vs -0.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DMO has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 14.2% 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 -60.2% for DMO 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DMO charges 2.10% per year while VOO charges 0.03%. On a $10,000 position that is $210 vs $3 annually, a gap of $207 per year that compounds over a long holding period. On income, DMO currently yields 13.24% against 1.08% for VOO.
Holdings Overlap
DMO and VOO share 0 holdings out of 530 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, DMO or VOO?
DMO has an expense ratio of 2.10% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $207 per year of difference.
Which performed better, DMO or VOO?
Over the past year DMO returned +0.78% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), DMO annualized -0.05% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, DMO or VOO?
DMO has been the more volatile fund at 14.5% annualized versus 14.2% for VOO. Worst drawdown: DMO -60.2% vs VOO -34.3%.
Should I hold both DMO and VOO?
DMO and VOO have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DMO and VOO?
DMO and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 530 unique securities.
Which pays a higher dividend, DMO or VOO?
DMO yields 13.24% while VOO yields 1.08%, so DMO currently pays the higher dividend yield.
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