GARP vs VOO
iShares MSCI USA Quality GARP ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. GARP delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | GARP | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $2.6B | $979.0B | |
| Dividend Yield | 0.26% | 1.09% | |
| Holdings | 135 | 509 | |
| YTD Return | +24.27% | +13.72% | |
| 1Y Return | +36.55% | +21.63% | |
| 3Y Return (annualized) | +33.08% | +21.55% | |
| 5Y Return (annualized) | +18.69% | +13.26% | |
| Volatility (annualized) | 20.5% | 14.1% | |
| Max Drawdown | -31.3% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 14, 2020 | Sep 7, 2010 |
GARP vs VOO Performance
iShares MSCI USA Quality GARP ETF (GARP) 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 GARP returned +36.55% while VOO returned +21.63%. Year to date, GARP is up 24.27% versus a gain of 13.72% for VOO.
Over three years, GARP compounded at +33.08% per year against +21.55% for VOO; over five years the annualized figures are +18.69% and +13.26% respectively. Across the full 7-year window we track, GARP has the edge at +21.03% annualized vs +13.56%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GARP has been the more volatile fund, with annualized monthly volatility of 20.5% 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 -31.3% for GARP 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
GARP charges 0.15% per year while VOO charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, GARP currently yields 0.26% against 1.09% for VOO.
Holdings Overlap
GARP and VOO share 94 holdings out of 543 unique holdings combined, representing a 42.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GARP or VOO?
GARP has an expense ratio of 0.15% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, GARP or VOO?
Over the past year GARP returned +36.55% vs +21.63% for VOO, so GARP leads on 1-year performance. Over the longest common window we track (7 years), GARP annualized +21.03% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, GARP or VOO?
GARP has been the more volatile fund at 20.5% annualized versus 14.1% for VOO. Worst drawdown: GARP -31.3% vs VOO -34.3%.
Should I hold both GARP and VOO?
GARP and VOO have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between GARP and VOO?
GARP and VOO share 94 common holdings with a 42.2% weight overlap. Combined, they hold 543 unique securities.
Which pays a higher dividend, GARP or VOO?
GARP yields 0.26% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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