DWAT 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

MetricDWATVOOWinner
Expense Ratio1.83%0.03%
AUM$2M$979.0B
Dividend Yield10.89%1.09%
Holdings12509
YTD Return-4.04%+13.44%
1Y Return+0.06%+22.62%
3Y Return (annualized)+0.81%+21.47%
5Y Return (annualized)+8.05%+13.27%
Volatility (annualized)12.8%14.1%
Max Drawdown-34.7%-34.3%
Fund FamilyArrow Investment TrustVanguard (US)
CategoryAllocation/BalancedEquity
InceptionOct 1, 2014Sep 7, 2010

DWAT vs VOO Performance

Arrow DWA Tactical ETF (DWAT) is a ETF from Arrow Investment Trust and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year DWAT returned +0.06% while VOO returned +22.62%. Year to date, DWAT is down 4.04% versus a gain of 13.44% for VOO.

Over three years, DWAT compounded at +0.81% per year against +21.47% for VOO; over five years the annualized figures are +8.05% and +13.27% respectively. Across the full 11-year window we track, VOO has the edge at +13.55% annualized vs +4.84%. 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 12.8% for DWAT. 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 -34.7% for DWAT 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 0.77. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

DWAT charges 1.83% per year while VOO charges 0.03%. On a $10,000 position that is $183 vs $3 annually, a gap of $180 per year that compounds over a long holding period. On income, DWAT currently yields 10.89% against 1.09% for VOO.

Frequently Asked Questions

Which is cheaper, DWAT or VOO?

DWAT has an expense ratio of 1.83% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $180 per year of difference.

Which performed better, DWAT or VOO?

Over the past year DWAT returned +0.06% vs +22.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (11 years), DWAT annualized +4.84% vs +13.55% for VOO. Past performance does not guarantee future results.

Which is riskier, DWAT or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 12.8% for DWAT. Worst drawdown: DWAT -34.7% vs VOO -34.3%.

Should I hold both DWAT and VOO?

DWAT and VOO have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, DWAT or VOO?

DWAT yields 10.89% while VOO yields 1.09%, so DWAT currently pays the higher dividend yield.

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