HYDW vs VOO

HYDW vs VOO

Which is better, HYDW or VOO?

High Yield Bond against Large Cap Blend.

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VOOHigher Returns: VOO

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricHYDWVOO
Expense Ratio0.20%0.03%Best
AUM$63M$997.4B
Dividend Yield5.76%1.08%
Holdings582509
YTD Return+2.25%+13.37%Best
1Y Return+4.33%+20.08%Best
3Y Return (annualized)+7.28%+21.29%Best
5Y Return (annualized)+3.49%+12.89%Best
Volatility (annualized)6.6%Best16.4%
Max Drawdown-18.1%Best-34.3%
$10,000 over 5 years$11,871$18,335Best
Fund FamilyXtrackers ETFsVanguard (US)
CategoryFixed IncomeEquity
StyleHigh Yield BondLarge Cap Blend
InceptionJan 11, 2018Sep 7, 2010

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jan 11, 2018 to Sep 4, 2026 (8.6 years).

HYDW vs VOO growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8.6 years both funds cover.

HYDW vs VOO Performance

Xtrackers Low Beta High Yield Bond ETF (HYDW) is an ETF from Xtrackers ETFs and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year HYDW returned +4.33% while VOO returned +20.08%. Year to date, HYDW is up 2.25% versus a gain of 13.37% for VOO.

Over three years, HYDW compounded at +7.28% per year against +21.29% for VOO; over five years the annualized figures are +3.49% and +12.89% respectively. Across the full 9-year window we track, VOO has the edge at +13.62% annualized vs +2.44%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 16.4% compared with 6.6% for HYDW. 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 -18.1% for HYDW and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HYDW 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, HYDW currently yields 5.76% against 1.08% for VOO.

Holdings Overlap

We hold position weights for 513 holdings in HYDW and 505 in VOO, totalling 86.4% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 513 positions we hold weights for in HYDW and 505 in VOO, against full books of 582 and 509.

You are not choosing between two funds in isolation.

Whichever of HYDW and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

HYDWVOO

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, HYDW or VOO?

HYDW has an expense ratio of 0.20% while VOO charges 0.03%. VOO is the cheaper option, by $17 a year on a $10,000 investment.

Which performed better, HYDW or VOO?

Over the past year HYDW returned +4.33% vs +20.08% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (9 years), HYDW annualized +2.44% vs +13.62% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, HYDW or VOO?

VOO has been the more volatile fund at 16.4% annualized versus 6.6% for HYDW. Worst drawdown: HYDW -18.1% vs VOO -34.3%.

Should I hold both HYDW and VOO?

HYDW and VOO have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, HYDW or VOO?

HYDW yields 5.76% while VOO yields 1.08%, so HYDW currently pays the higher dividend yield.

Is VOO better than HYDW?

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.