GEM vs VOO

Quick Verdict

VOO has a lower expense ratio. GEM delivered stronger 1-year returns. GEM offers more diversification with 722 holdings.

Lower Fees: VOOHigher Returns: GEMMore Diversified: GEM

Side-by-Side Comparison

MetricGEMVOOWinner
Expense Ratio0.35%0.03%
AUM$1.7B$979.0B
Dividend Yield1.87%1.09%
Holdings777509
YTD Return+18.02%+13.80%
1Y Return+34.93%+23.71%
3Y Return (annualized)+20.18%+21.50%
5Y Return (annualized)+7.46%+13.44%
Volatility (annualized)16.5%14.1%
Max Drawdown-37.0%-34.3%
Fund FamilyGoldman Sachs Asset ManagementVanguard (US)
CategoryEquityEquity
InceptionSep 25, 2015Sep 7, 2010

GEM vs VOO Performance

Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) is a ETF from Goldman Sachs Asset Management and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year GEM returned +34.93% while VOO returned +23.71%. Year to date, GEM is up 18.02% versus a gain of 13.80% for VOO.

Over three years, GEM compounded at +20.18% per year against +21.50% for VOO; over five years the annualized figures are +7.46% and +13.44% respectively. Across the full 11-year window we track, VOO has the edge at +13.58% annualized vs +9.10%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

GEM has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -37.0% for GEM 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 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

GEM charges 0.35% per year while VOO charges 0.03%. On a $10,000 position that is $35 vs $3 annually, a gap of $32 per year that compounds over a long holding period. On income, GEM currently yields 1.87% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

GEM and VOO share 0 holdings out of 1227 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, GEM or VOO?

GEM has an expense ratio of 0.35% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $32 per year of difference.

Which performed better, GEM or VOO?

Over the past year GEM returned +34.93% vs +23.71% for VOO, so GEM leads on 1-year performance. Over the longest common window we track (11 years), GEM annualized +9.10% vs +13.58% for VOO. Past performance does not guarantee future results.

Which is riskier, GEM or VOO?

GEM has been the more volatile fund at 16.5% annualized versus 14.1% for VOO. Worst drawdown: GEM -37.0% vs VOO -34.3%.

Should I hold both GEM and VOO?

GEM and VOO have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between GEM and VOO?

GEM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1227 unique securities.

Which pays a higher dividend, GEM or VOO?

GEM yields 1.87% while VOO yields 1.09%, so GEM currently pays the higher dividend yield.

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