REIT vs VOO
ALPS Active REIT ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | REIT | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.68% | 0.03% | |
| AUM | $59M | $979.0B | |
| Dividend Yield | 3.06% | 1.09% | |
| Holdings | 30 | 509 | |
| YTD Return | +17.25% | +13.72% | |
| 1Y Return | +21.06% | +21.63% | |
| 3Y Return (annualized) | +10.92% | +21.55% | |
| 5Y Return (annualized) | +4.47% | +13.26% | |
| Volatility (annualized) | 18.1% | 14.1% | |
| Max Drawdown | -29.3% | -34.3% | |
| Fund Family | ALPS Advisors | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 24, 2021 | Sep 7, 2010 |
REIT vs VOO Performance
ALPS Active REIT ETF (REIT) is a ETF from ALPS Advisors and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year REIT returned +21.06% while VOO returned +21.63%. Year to date, REIT is up 17.25% versus a gain of 13.72% for VOO.
Over three years, REIT compounded at +10.92% per year against +21.55% for VOO; over five years the annualized figures are +4.47% and +13.26% respectively. Across the full 6-year window we track, VOO has the edge at +13.56% annualized vs +7.66%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
REIT has been the more volatile fund, with annualized monthly volatility of 18.1% 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 -29.3% for REIT 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 0.79. 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 3.06% against 1.09% for VOO.
Holdings Overlap
REIT and VOO share 16 holdings out of 518 unique holdings combined, representing a 1.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $65 per year of difference.
Which performed better, REIT or VOO?
Over the past year REIT returned +21.06% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (6 years), REIT annualized +7.66% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, REIT or VOO?
REIT has been the more volatile fund at 18.1% annualized versus 14.1% for VOO. Worst drawdown: REIT -29.3% vs VOO -34.3%.
Should I hold both REIT and VOO?
REIT and VOO have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between REIT and VOO?
REIT and VOO share 16 common holdings with a 1.3% weight overlap. Combined, they hold 518 unique securities.
Which pays a higher dividend, REIT or VOO?
REIT yields 3.06% while VOO yields 1.09%, so REIT currently pays the higher dividend yield.
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