GDL vs VOO
The GDL Fund 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 509 holdings.
Side-by-Side Comparison
| Metric | GDL | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 2.70% | 0.03% | |
| AUM | $119M | $997.4B | |
| Dividend Yield | 4.50% | 1.08% | |
| Holdings | 129 | 509 | |
| YTD Return | +3.58% | +12.25% | |
| 1Y Return | +5.60% | +20.92% | |
| 3Y Return (annualized) | +8.39% | +21.79% | |
| 5Y Return (annualized) | +4.68% | +13.05% | |
| Volatility (annualized) | 8.5% | 14.1% | |
| Max Drawdown | -72.5% | -34.3% | |
| Fund Family | Gabelli Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 25, 2007 | Sep 7, 2010 |
GDL vs VOO Performance
The GDL Fund (GDL) is a ETF from Gabelli Funds and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year GDL returned +5.60% while VOO returned +20.92%. Year to date, GDL is up 3.58% versus a gain of 12.25% for VOO.
Over three years, GDL compounded at +8.39% per year against +21.79% for VOO; over five years the annualized figures are +4.68% and +13.05% respectively. Across the full 16-year window we track, VOO has the edge at +13.45% annualized vs -2.74%. 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 8.5% for GDL. 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 -72.5% for GDL 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GDL charges 2.70% per year while VOO charges 0.03%. On a $10,000 position that is $270 vs $3 annually, a gap of $267 per year that compounds over a long holding period. On income, GDL currently yields 4.50% against 1.08% for VOO.
Holdings Overlap
GDL and VOO share 9 holdings out of 611 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GDL or VOO?
GDL has an expense ratio of 2.70% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $267 per year of difference.
Which performed better, GDL or VOO?
Over the past year GDL returned +5.60% vs +20.92% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), GDL annualized -2.74% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, GDL or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 8.5% for GDL. Worst drawdown: GDL -72.5% vs VOO -34.3%.
Should I hold both GDL and VOO?
GDL and VOO have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GDL and VOO?
GDL and VOO share 9 common holdings with a 0.7% weight overlap. Combined, they hold 611 unique securities.
Which pays a higher dividend, GDL or VOO?
GDL yields 4.50% while VOO yields 1.08%, so GDL currently pays the higher dividend yield.
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