IIF vs VOO
Morgan Stanley India Investment Fund Inc. 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 | IIF | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.28% | 0.03% | |
| AUM | $318M | $997.4B | |
| Dividend Yield | 7.69% | 1.08% | |
| Holdings | 46 | 509 | |
| YTD Return | -7.95% | +14.27% | |
| 1Y Return | -6.72% | +21.79% | |
| 3Y Return (annualized) | +13.03% | +22.19% | |
| 5Y Return (annualized) | +8.27% | +13.28% | |
| Volatility (annualized) | 31.0% | 14.2% | |
| Max Drawdown | -62.1% | -34.3% | |
| Fund Family | Morgan Stanley Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 25, 1994 | Sep 7, 2010 |
IIF vs VOO Performance
Morgan Stanley India Investment Fund Inc. (IIF) is a ETF from Morgan Stanley Investment Management and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IIF returned -6.72% while VOO returned +21.79%. Year to date, IIF is down 7.95% versus a gain of 14.27% for VOO.
Over three years, IIF compounded at +13.03% per year against +22.19% for VOO; over five years the annualized figures are +8.27% and +13.28% respectively. Across the full 16-year window we track, IIF has the edge at +17.69% annualized vs +13.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IIF has been the more volatile fund, with annualized monthly volatility of 31.0% compared with 14.2% 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 -62.1% for IIF 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IIF charges 1.28% per year while VOO charges 0.03%. On a $10,000 position that is $128 vs $3 annually, a gap of $125 per year that compounds over a long holding period. On income, IIF currently yields 7.69% against 1.08% for VOO.
Holdings Overlap
IIF and VOO share 0 holdings out of 551 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, IIF or VOO?
IIF has an expense ratio of 1.28% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $125 per year of difference.
Which performed better, IIF or VOO?
Over the past year IIF returned -6.72% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), IIF annualized +17.69% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, IIF or VOO?
IIF has been the more volatile fund at 31.0% annualized versus 14.2% for VOO. Worst drawdown: IIF -62.1% vs VOO -34.3%.
Should I hold both IIF and VOO?
IIF and VOO have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IIF and VOO?
IIF and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 551 unique securities.
Which pays a higher dividend, IIF or VOO?
IIF yields 7.69% while VOO yields 1.08%, so IIF currently pays the higher dividend yield.
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