FALN vs VOO
iShares Fallen Angels USD Bond ETF 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 505 holdings.
Side-by-Side Comparison
| Metric | FALN | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.03% | |
| AUM | $1.6B | $979.0B | |
| Dividend Yield | 6.41% | 1.09% | |
| Holdings | 159 | 509 | |
| YTD Return | +2.49% | +14.48% | |
| 1Y Return | +5.79% | +22.02% | |
| 3Y Return (annualized) | +8.84% | +21.80% | |
| 5Y Return (annualized) | +3.58% | +13.36% | |
| Volatility (annualized) | 9.4% | 14.2% | |
| Max Drawdown | -30.0% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 14, 2016 | Sep 7, 2010 |
FALN vs VOO Performance
iShares Fallen Angels USD Bond ETF (FALN) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FALN returned +5.79% while VOO returned +22.02%. Year to date, FALN is up 2.49% versus a gain of 14.48% for VOO.
Over three years, FALN compounded at +8.84% per year against +21.80% for VOO; over five years the annualized figures are +3.58% and +13.36% respectively. Across the full 10-year window we track, VOO has the edge at +13.61% annualized vs +3.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 6.41% against 1.09% for VOO.
Holdings Overlap
FALN and VOO share 0 holdings out of 663 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, FALN or VOO?
FALN has an expense ratio of 0.25% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, FALN or VOO?
Over the past year FALN returned +5.79% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (10 years), FALN annualized +3.71% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, FALN or VOO?
VOO has been the more volatile fund at 14.2% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FALN and VOO?
FALN and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 663 unique securities.
Which pays a higher dividend, FALN or VOO?
FALN yields 6.41% while VOO yields 1.09%, so FALN currently pays the higher dividend yield.
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