REM vs VOO
iShares Mortgage Real Estate 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 509 holdings.
Side-by-Side Comparison
| Metric | REM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.48% | 0.03% | |
| AUM | $547M | $997.4B | |
| Dividend Yield | 8.92% | 1.08% | |
| Holdings | 37 | 509 | |
| YTD Return | -1.54% | +13.73% | |
| 1Y Return | +6.24% | +21.53% | |
| 3Y Return (annualized) | +7.57% | +22.60% | |
| 5Y Return (annualized) | -1.63% | +13.31% | |
| Volatility (annualized) | 24.6% | 14.1% | |
| Max Drawdown | -92.9% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 1, 2007 | Sep 7, 2010 |
REM vs VOO Performance
iShares Mortgage Real Estate ETF (REM) 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 REM returned +6.24% while VOO returned +21.53%. Year to date, REM is down 1.54% versus a gain of 13.73% for VOO.
Over three years, REM compounded at +7.57% per year against +22.60% for VOO; over five years the annualized figures are -1.63% and +13.31% respectively. Across the full 16-year window we track, VOO has the edge at +13.55% annualized vs -8.73%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
REM has been the more volatile fund, with annualized monthly volatility of 24.6% 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 -92.9% for REM 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
REM charges 0.48% per year while VOO charges 0.03%. On a $10,000 position that is $48 vs $3 annually, a gap of $45 per year that compounds over a long holding period. On income, REM currently yields 8.92% against 1.08% for VOO.
Holdings Overlap
REM and VOO share 0 holdings out of 508 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, REM or VOO?
REM has an expense ratio of 0.48% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, REM or VOO?
Over the past year REM returned +6.24% vs +21.53% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), REM annualized -8.73% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, REM or VOO?
REM has been the more volatile fund at 24.6% annualized versus 14.1% for VOO. Worst drawdown: REM -92.9% vs VOO -34.3%.
Should I hold both REM and VOO?
REM and VOO have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between REM and VOO?
REM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, REM or VOO?
REM yields 8.92% while VOO yields 1.08%, so REM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.