GBF vs VOO
iShares Government/Credit Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. GBF offers more diversification with 3004 holdings.
Side-by-Side Comparison
| Metric | GBF | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.03% | |
| AUM | $128M | $979.0B | |
| Dividend Yield | 3.77% | 1.09% | |
| Holdings | 3,311 | 509 | |
| YTD Return | -0.53% | +13.80% | |
| 1Y Return | +1.44% | +23.71% | |
| 3Y Return (annualized) | +3.58% | +21.50% | |
| 5Y Return (annualized) | -0.62% | +13.44% | |
| Volatility (annualized) | 4.8% | 14.1% | |
| Max Drawdown | -20.2% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | Sep 7, 2010 |
GBF vs VOO Performance
iShares Government/Credit Bond ETF (GBF) 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 GBF returned +1.44% while VOO returned +23.71%. Year to date, GBF is down 0.53% versus a gain of 13.80% for VOO.
Over three years, GBF compounded at +3.58% per year against +21.50% for VOO; over five years the annualized figures are -0.62% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs +0.92%. 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 4.8% for GBF. 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 -20.2% for GBF 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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GBF charges 0.20% per year while VOO charges 0.03%. On a $10,000 position that is $20 vs $3 annually, a gap of $17 per year that compounds over a long holding period. On income, GBF currently yields 3.77% against 1.09% for VOO.
Holdings Overlap
GBF and VOO share 3 holdings out of 3506 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, GBF or VOO?
GBF has an expense ratio of 0.20% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, GBF or VOO?
Over the past year GBF returned +1.44% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), GBF annualized +0.92% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, GBF or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 4.8% for GBF. Worst drawdown: GBF -20.2% vs VOO -34.3%.
Should I hold both GBF and VOO?
GBF and VOO have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GBF and VOO?
GBF and VOO share 3 common holdings with a 0.0% weight overlap. Combined, they hold 3506 unique securities.
Which pays a higher dividend, GBF or VOO?
GBF yields 3.77% while VOO yields 1.09%, so GBF currently pays the higher dividend yield.
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