IAI vs VOO
iShares US Broker-Dealers & Securities Exchanges ETF 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 | IAI | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.03% | |
| AUM | $1.4B | $997.4B | |
| Dividend Yield | 1.10% | 1.08% | |
| Holdings | 40 | 509 | |
| YTD Return | +4.58% | +12.25% | |
| 1Y Return | +10.69% | +20.92% | |
| 3Y Return (annualized) | +28.19% | +21.79% | |
| 5Y Return (annualized) | +13.99% | +13.05% | |
| Volatility (annualized) | 22.6% | 14.1% | |
| Max Drawdown | -75.8% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Sep 7, 2010 |
IAI vs VOO Performance
iShares US Broker-Dealers & Securities Exchanges ETF (IAI) 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 IAI returned +10.69% while VOO returned +20.92%. Year to date, IAI is up 4.58% versus a gain of 12.25% for VOO.
Over three years, IAI compounded at +28.19% per year against +21.79% for VOO; over five years the annualized figures are +13.99% and +13.05% respectively. Across the full 16-year window we track, VOO has the edge at +13.45% annualized vs +7.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAI has been the more volatile fund, with annualized monthly volatility of 22.6% 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 -75.8% for IAI 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IAI charges 0.37% per year while VOO charges 0.03%. On a $10,000 position that is $37 vs $3 annually, a gap of $34 per year that compounds over a long holding period. On income, IAI currently yields 1.10% against 1.08% for VOO.
Holdings Overlap
IAI and VOO share 15 holdings out of 526 unique holdings combined, representing a 2.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IAI or VOO?
IAI has an expense ratio of 0.37% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, IAI or VOO?
Over the past year IAI returned +10.69% vs +20.92% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), IAI annualized +7.11% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, IAI or VOO?
IAI has been the more volatile fund at 22.6% annualized versus 14.1% for VOO. Worst drawdown: IAI -75.8% vs VOO -34.3%.
Should I hold both IAI and VOO?
IAI and VOO have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IAI and VOO?
IAI and VOO share 15 common holdings with a 2.0% weight overlap. Combined, they hold 526 unique securities.
Which pays a higher dividend, IAI or VOO?
IAI yields 1.10% while VOO yields 1.08%, so IAI currently pays the higher dividend yield.
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