REIT vs VOO

REIT vs VOO

Which is better, REIT or VOO?

All Cap Blend against Large Cap Blend.

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 55.2%.

Lower Fees: VOOHigher Returns: VOOLess Concentrated: VOO

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

MetricREITVOO
Expense Ratio0.68%0.03%Best
AUM$57M$997.4B
Dividend Yield2.66%1.08%
Holdings30509
YTD Return+15.83%Best+12.74%
1Y Return+15.41%+19.43%Best
3Y Return (annualized)+10.84%+21.18%Best
5Y Return (annualized)+3.50%+12.76%Best
Volatility (annualized)17.9%15.2%Best
Max Drawdown-29.3%-24.5%Best
$10,000 over 5 years$11,877$18,230Best
Top 10 Weight55.2%36.4%Best
Fund FamilyALPS AdvisorsVanguard (US)
CategoryEquityEquity
StyleAll Cap BlendLarge Cap Blend
InceptionFeb 24, 2021Sep 7, 2010

Volatility and max drawdown are measured over the window both funds cover: Feb 26, 2021 to Sep 8, 2026 (5.5 years).

REIT 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 5.5 years both funds cover.

REIT vs VOO Performance

ALPS Active REIT ETF (REIT) is an ETF from ALPS Advisors and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year REIT returned +15.41% while VOO returned +19.43%. Year to date, REIT is up 15.83% versus a gain of 12.74% for VOO.

Over three years, REIT compounded at +10.84% per year against +21.18% for VOO; over five years the annualized figures are +3.50% and +12.76% respectively. Across the full 6-year window we track, VOO has the edge at +15.10% annualized vs +7.31%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

REIT has been the more volatile fund, with annualized monthly volatility of 17.9% compared with 15.2% 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 -29.3% for REIT and -24.5% 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

REIT charges 0.68% per year while VOO charges 0.03%. On a $10,000 position that is $68 vs $3 annually, a gap of $65 per year that compounds over a long holding period. On income, REIT currently yields 2.66% against 1.08% for VOO.

Holdings Overlap

REIT already in VOO63.7%
VOO already in REIT1.3%

63.7% of REIT's money is in holdings VOO also owns. 1.3% of VOO's money is in holdings REIT also owns.

The two portfolios partly overlap.

16 positions in common, counted across the 29 positions we hold weights for in REIT and 504 in VOO, against full books of 30 and 509.

What only one of them owns

Measured across the 29 and 504 positions we hold weights for.

VOO holds 478 positions REIT does not, 98.1% of the fund.

Largest: NVDA 7.51%, AAPL 6.59%, MSFT 4.30%, AMZN 3.62%, GOOGL 3.25%

Top Shared Holdings

StockWeight in REITWeight in VOODifference
WELLWelltower, Inc.9.85%0.25%9.60%
PLDPrologis Inc8.79%0.20%8.59%
EQIXEquinix Inc - Common8.56%0.16%8.40%
SPGSimon Property Group Inc. Reit Com5.02%0.11%4.91%
ESSEssex Property Trust Inc.4.31%0.03%4.28%
PSAPublic Storage 3.73%0.08%3.65%
HSTHost Hotels & Resorts3.16%0.02%3.14%
INVHInvitation Homes Inc2.99%0.03%2.96%
DLRDigital Realty Trust Inc.2.80%0.09%2.71%
VICIVici Properties Inc2.81%0.04%2.77%

63.7% of REIT is already inside VOO.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

REITVOO

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Frequently Asked Questions

Which is cheaper, REIT or VOO?

REIT has an expense ratio of 0.68% while VOO charges 0.03%. VOO is the cheaper option, by $65 a year on a $10,000 investment.

Which performed better, REIT or VOO?

Over the past year REIT returned +15.41% vs +19.43% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (6 years), REIT annualized +7.31% vs +15.10% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, REIT or VOO?

REIT has been the more volatile fund at 17.9% annualized versus 15.2% for VOO. Worst drawdown: REIT -29.3% vs VOO -24.5%.

Should I hold both REIT and VOO?

REIT and VOO have a monthly-return correlation of 0.79, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between REIT and VOO?

63.7% of REIT's money is in holdings VOO also owns. 1.3% of VOO's is in holdings REIT also owns. They hold 16 positions in common, counted across the 29 positions we hold weights for in REIT and 504 in VOO.

Which pays a higher dividend, REIT or VOO?

REIT yields 2.66% while VOO yields 1.08%, so REIT currently pays the higher dividend yield.

Is VOO better than REIT?

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 55.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.