FALN vs VOO
iShares Fallen Angels USD Bond ETF vs Vanguard S&P 500 ETF
Which is better, FALN or VOO?
High Yield Bond against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. FALN is less concentrated, with 17.2% of the fund in its ten largest positions against 36.4%.
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
| Metric | FALN | VOO |
|---|---|---|
| Expense Ratio | 0.25% | 0.03%Best |
| AUM | $1.7B | $997.4B |
| Dividend Yield | 6.51% | 1.08% |
| Holdings | 157 | 509 |
| YTD Return | +2.43% | +13.37%Best |
| 1Y Return | +4.64% | +20.08%Best |
| 3Y Return (annualized) | +8.70% | +21.29%Best |
| 5Y Return (annualized) | +3.33% | +12.89%Best |
| Volatility (annualized) | 9.4%Best | 15.2% |
| Max Drawdown | -30.0%Best | -34.3% |
| $10,000 over 5 years | $11,780 | $18,335Best |
| Top 10 Weight | 17.2%Best | 36.4% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Blend |
| Inception | Jun 14, 2016 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Jun 17, 2016 to Sep 4, 2026 (10.2 years).
FALN 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 covers the 10.2 years both funds cover.
FALN vs VOO Performance
iShares Fallen Angels USD Bond ETF (FALN) 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 FALN returned +4.64% while VOO returned +20.08%. Year to date, FALN is up 2.43% versus a gain of 13.37% for VOO.
Over three years, FALN compounded at +8.70% per year against +21.29% for VOO; over five years the annualized figures are +3.33% and +12.89% respectively. Across the full 10-year window we track, VOO has the edge at +14.59% annualized vs +3.69%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 15.2% compared with 9.4% for FALN. 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 -30.0% for FALN 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FALN 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, FALN currently yields 6.51% against 1.08% for VOO.
Holdings Overlap
We hold position weights for 151 holdings in FALN and 505 in VOO, totalling 96.7% and 99.9% 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 151 positions we hold weights for in FALN and 505 in VOO, against full books of 157 and 509.
What only one of them owns
Measured across the 151 and 505 positions we hold weights for.
VOO holds 497 positions FALN does not, 99.5% of the fund.
Largest: NVDA 7.51%, AAPL 6.59%, MSFT 4.30%, AMZN 3.62%, GOOGL 3.25%
You are not choosing between two funds in isolation.
Whichever of FALN and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FALN or VOO?
FALN 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, FALN or VOO?
Over the past year FALN returned +4.64% vs +20.08% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (10 years), FALN annualized +3.69% vs +14.59% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FALN or VOO?
VOO has been the more volatile fund at 15.2% annualized versus 9.4% for FALN. Worst drawdown: FALN -30.0% vs VOO -34.3%.
Should I hold both FALN and VOO?
FALN and VOO have a monthly-return correlation of 0.79, 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, FALN or VOO?
FALN yields 6.51% while VOO yields 1.08%, so FALN currently pays the higher dividend yield.
Is VOO better than FALN?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. FALN is less concentrated, with 17.2% of the fund in its ten largest positions against 36.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.