ITWO vs VOO

Quick Verdict

VOO has a lower expense ratio. ITWO delivered stronger 1-year returns. ITWO offers more diversification with 1965 holdings.

Lower Fees: VOOHigher Returns: ITWOMore Diversified: ITWO

Side-by-Side Comparison

MetricITWOVOOWinner
Expense Ratio0.55%0.03%
AUM$198M$979.0B
Dividend Yield7.22%1.09%
Holdings1,981509
YTD Return+16.73%+13.72%
1Y Return+27.37%+21.63%
3Y Return (annualized)-+21.55%
5Y Return (annualized)-+13.26%
Volatility (annualized)15.7%14.1%
Max Drawdown-24.8%-34.3%
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
InceptionSep 4, 2024Sep 7, 2010

ITWO vs VOO Performance

ProShares Russell 2000 High Income ETF (ITWO) is a ETF from ProShares and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year ITWO returned +27.37% while VOO returned +21.63%. Year to date, ITWO is up 16.73% versus a gain of 13.72% for VOO.

Risk: Volatility and Drawdowns

ITWO has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -24.8% for ITWO 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 0.87. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

ITWO charges 0.55% per year while VOO charges 0.03%. On a $10,000 position that is $55 vs $3 annually, a gap of $52 per year that compounds over a long holding period. On income, ITWO currently yields 7.22% against 1.09% for VOO.

Holdings Overlap

0.1%overlap

ITWO and VOO share 2 holdings out of 2468 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in ITWOWeight in VOODifference
NEM0.02%0.15%0.13%
XEL0.03%0.08%0.05%

Frequently Asked Questions

Which is cheaper, ITWO or VOO?

ITWO has an expense ratio of 0.55% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $52 per year of difference.

Which performed better, ITWO or VOO?

Over the past year ITWO returned +27.37% vs +21.63% for VOO, so ITWO leads on 1-year performance. Over the longest common window we track (2 years), ITWO annualized +18.51% vs +13.56% for VOO. Past performance does not guarantee future results.

Which is riskier, ITWO or VOO?

ITWO has been the more volatile fund at 15.7% annualized versus 14.1% for VOO. Worst drawdown: ITWO -24.8% vs VOO -34.3%.

Should I hold both ITWO and VOO?

ITWO and VOO have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ITWO and VOO?

ITWO and VOO share 2 common holdings with a 0.1% weight overlap. Combined, they hold 2468 unique securities.

Which pays a higher dividend, ITWO or VOO?

ITWO yields 7.22% while VOO yields 1.09%, so ITWO currently pays the higher dividend yield.

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