IUSB vs VOO
iShares Core Universal USD Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. IUSB offers more diversification with 17,578 holdings.
Side-by-Side Comparison
| Metric | IUSB | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.03% | |
| AUM | $43.5B | $997.4B | |
| Dividend Yield | 4.26% | 1.08% | |
| Holdings | 17,578 | 509 | |
| YTD Return | +0.24% | +12.38% | |
| 1Y Return | +2.58% | +20.22% | |
| 3Y Return (annualized) | +4.92% | +21.79% | |
| 5Y Return (annualized) | +0.13% | +12.84% | |
| Volatility (annualized) | 4.8% | 14.1% | |
| Max Drawdown | -50.2% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 10, 2014 | Sep 7, 2010 |
IUSB vs VOO Performance
iShares Core Universal USD Bond ETF (IUSB) 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 IUSB returned +2.58% while VOO returned +20.22%. Year to date, IUSB is up 0.24% versus a gain of 12.38% for VOO.
Over three years, IUSB compounded at +4.92% per year against +21.79% for VOO; over five years the annualized figures are +0.13% and +12.84% respectively. Across the full 12-year window we track, VOO has the edge at +13.45% annualized vs +0.71%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 4.8% for IUSB. 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 -50.2% for IUSB 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IUSB charges 0.06% per year while VOO charges 0.03%. On a $10,000 position that is $6 vs $3 annually, a gap of $3 per year that compounds over a long holding period. On income, IUSB currently yields 4.26% against 1.08% for VOO.
Holdings Overlap
IUSB and VOO share 6 holdings out of 9818 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, IUSB or VOO?
IUSB has an expense ratio of 0.06% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, IUSB or VOO?
Over the past year IUSB returned +2.58% vs +20.22% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (12 years), IUSB annualized +0.71% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, IUSB or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 4.8% for IUSB. Worst drawdown: IUSB -50.2% vs VOO -34.3%.
Should I hold both IUSB and VOO?
IUSB and VOO have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IUSB and VOO?
IUSB and VOO share 6 common holdings with a 0.0% weight overlap. Combined, they hold 9818 unique securities.
Which pays a higher dividend, IUSB or VOO?
IUSB yields 4.26% while VOO yields 1.08%, so IUSB currently pays the higher dividend yield.
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