OCTJ vs VOO

OCTJ vs VOO
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Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricOCTJVOOWinner
Expense Ratio0.79%0.03%
AUM$19M$997.4B
Dividend Yield5.26%1.08%
Holdings6509
YTD Return+0.58%+12.76%
1Y Return+1.27%+20.14%
3Y Return (annualized)+4.56%+21.69%
5Y Return (annualized)-+13.00%
Volatility (annualized)2.2%14.1%
Max Drawdown-5.3%-34.3%
Fund FamilyInnovator ETFs TrustVanguard (US)
CategoryAlternativeEquity
InceptionOct 2, 2023Sep 7, 2010

OCTJ vs VOO Performance

Innovator Premium Income 30 Barrier ETF - October (OCTJ) is a ETF from Innovator ETFs Trust and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year OCTJ returned +1.27% while VOO returned +20.14%. Year to date, OCTJ is up 0.58% versus a gain of 12.76% for VOO.

Over three years, OCTJ compounded at +4.56% per year against +21.69% for VOO. Across the full 3-year window we track, VOO has the edge at +13.47% annualized vs +4.56%. 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 2.2% for OCTJ. 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 -5.3% for OCTJ 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 0.77. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

OCTJ charges 0.79% per year while VOO charges 0.03%. On a $10,000 position that is $79 vs $3 annually, a gap of $76 per year that compounds over a long holding period. On income, OCTJ currently yields 5.26% against 1.08% for VOO.

Frequently Asked Questions

Which is cheaper, OCTJ or VOO?

OCTJ has an expense ratio of 0.79% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $76 per year of difference.

Which performed better, OCTJ or VOO?

Over the past year OCTJ returned +1.27% vs +20.14% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), OCTJ annualized +4.56% vs +13.47% for VOO. Past performance does not guarantee future results.

Which is riskier, OCTJ or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 2.2% for OCTJ. Worst drawdown: OCTJ -5.3% vs VOO -34.3%.

Should I hold both OCTJ and VOO?

OCTJ and VOO have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, OCTJ or VOO?

OCTJ yields 5.26% while VOO yields 1.08%, so OCTJ currently pays the higher dividend yield.

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