ITB vs VOO
iShares US Home Construction 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 505 holdings.
Side-by-Side Comparison
| Metric | ITB | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.03% | |
| AUM | $2.3B | $979.0B | |
| Dividend Yield | 0.61% | 1.09% | |
| Holdings | 48 | 509 | |
| YTD Return | +3.94% | +13.80% | |
| 1Y Return | -1.63% | +23.71% | |
| 3Y Return (annualized) | +5.43% | +21.50% | |
| 5Y Return (annualized) | +8.25% | +13.44% | |
| Volatility (annualized) | 31.1% | 14.1% | |
| Max Drawdown | -87.1% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2006 | Sep 7, 2010 |
ITB vs VOO Performance
iShares US Home Construction ETF (ITB) 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 ITB returned -1.63% while VOO returned +23.71%. Year to date, ITB is up 3.94% versus a gain of 13.80% for VOO.
Over three years, ITB compounded at +5.43% per year against +21.50% for VOO; over five years the annualized figures are +8.25% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs +3.77%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ITB has been the more volatile fund, with annualized monthly volatility of 31.1% 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 -87.1% for ITB 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ITB charges 0.38% per year while VOO charges 0.03%. On a $10,000 position that is $38 vs $3 annually, a gap of $35 per year that compounds over a long holding period. On income, ITB currently yields 0.61% against 1.09% for VOO.
Holdings Overlap
ITB and VOO share 10 holdings out of 540 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ITB or VOO?
ITB has an expense ratio of 0.38% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, ITB or VOO?
Over the past year ITB returned -1.63% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), ITB annualized +3.77% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, ITB or VOO?
ITB has been the more volatile fund at 31.1% annualized versus 14.1% for VOO. Worst drawdown: ITB -87.1% vs VOO -34.3%.
Should I hold both ITB and VOO?
ITB and VOO have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITB and VOO?
ITB and VOO share 10 common holdings with a 1.1% weight overlap. Combined, they hold 540 unique securities.
Which pays a higher dividend, ITB or VOO?
ITB yields 0.61% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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