MFEM vs VOO

MFEM vs VOO

Which is better, MFEM or VOO?

Large Cap Value against Large Cap Blend.

VOO has a lower expense ratio. MFEM led over 1Y, VOO over 3Y, 5Y and the full window.

Lower Fees: VOOHigher Returns: split

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricMFEMVOO
Expense Ratio0.49%0.03%Best
AUM$159M$997.4B
Dividend Yield2.18%1.04%
Holdings701509
YTD Return+24.20%Best+11.55%
1Y Return+32.88%Best+17.54%
3Y Return (annualized)+20.44%+20.71%Best
5Y Return (annualized)+8.49%+12.80%Best
Volatility (annualized)17.7%16.2%Best
Max Drawdown-45.3%-34.3%Best
$10,000 over 5 years$15,030$18,262Best
Fund FamilyPIMCO (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Blend
InceptionAug 31, 2017Sep 7, 2010

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 6, 2017 to Sep 10, 2026 (9 years).

MFEM vs VOO growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9 years both funds cover.

MFEM vs VOO Performance

PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is an ETF from PIMCO (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year MFEM returned +32.88% while VOO returned +17.54%. Year to date, MFEM is up 24.20% versus a gain of 11.55% for VOO.

Over three years, MFEM compounded at +20.44% per year against +20.71% for VOO; over five years the annualized figures are +8.49% and +12.80% respectively. Across the full 9-year window we track, VOO has the edge at +14.25% annualized vs +7.03%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MFEM has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 16.2% 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 -45.3% for MFEM and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

MFEM charges 0.49% per year while VOO charges 0.03%. On a $10,000 position that is $49 vs $3 annually, a gap of $46 per year that compounds over a long holding period. On income, MFEM currently yields 2.18% against 1.04% for VOO.

Holdings Overlap

We hold position weights for 503 holdings in MFEM and 505 in VOO, totalling 79.2% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 503 positions we hold weights for in MFEM and 505 in VOO, against full books of 701 and 509.

You are not choosing between two funds in isolation.

Whichever of MFEM and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

MFEMVOO

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, MFEM or VOO?

MFEM has an expense ratio of 0.49% while VOO charges 0.03%. VOO is the cheaper option, by $46 a year on a $10,000 investment.

Which performed better, MFEM or VOO?

Over the past year MFEM returned +32.88% vs +17.54% for VOO, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), MFEM annualized +7.03% vs +14.25% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, MFEM or VOO?

MFEM has been the more volatile fund at 17.7% annualized versus 16.2% for VOO. Worst drawdown: MFEM -45.3% vs VOO -34.3%.

Should I hold both MFEM and VOO?

MFEM and VOO have a monthly-return correlation of 0.73, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, MFEM or VOO?

MFEM yields 2.18% while VOO yields 1.04%, so MFEM currently pays the higher dividend yield.

Is VOO better than MFEM?

VOO has a lower expense ratio. MFEM led over 1Y, VOO over 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.