IGHG vs VOO
ProShares Investment Grade-Interest Rate Hedged 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 | IGHG | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.03% | |
| AUM | $335M | $997.4B | |
| Dividend Yield | 5.12% | 1.08% | |
| Holdings | 186 | 509 | |
| YTD Return | -0.92% | +14.27% | |
| 1Y Return | +0.56% | +21.79% | |
| 3Y Return (annualized) | +6.36% | +22.19% | |
| 5Y Return (annualized) | +4.74% | +13.28% | |
| Volatility (annualized) | 11.7% | 14.2% | |
| Max Drawdown | -43.7% | -34.3% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 5, 2013 | Sep 7, 2010 |
IGHG vs VOO Performance
ProShares Investment Grade-Interest Rate Hedged ETF (IGHG) is a ETF from ProShares and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IGHG returned +0.56% while VOO returned +21.79%. Year to date, IGHG is down 0.92% versus a gain of 14.27% for VOO.
Over three years, IGHG compounded at +6.36% per year against +22.19% for VOO; over five years the annualized figures are +4.74% and +13.28% respectively. Across the full 13-year window we track, VOO has the edge at +13.59% annualized vs +3.43%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 11.7% for IGHG. 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 -43.7% for IGHG 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGHG charges 0.30% per year while VOO charges 0.03%. On a $10,000 position that is $30 vs $3 annually, a gap of $27 per year that compounds over a long holding period. On income, IGHG currently yields 5.12% against 1.08% for VOO.
Frequently Asked Questions
Which is cheaper, IGHG or VOO?
IGHG has an expense ratio of 0.30% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, IGHG or VOO?
Over the past year IGHG returned +0.56% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (13 years), IGHG annualized +3.43% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, IGHG or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 11.7% for IGHG. Worst drawdown: IGHG -43.7% vs VOO -34.3%.
Should I hold both IGHG and VOO?
IGHG and VOO have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, IGHG or VOO?
IGHG yields 5.12% while VOO yields 1.08%, so IGHG currently pays the higher dividend yield.
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