RMT vs VOO

RMT vs VOO

Which is better, RMT or VOO?

Small Cap Blend against Large Cap Blend.

VOO has a lower expense ratio. RMT led over 1Y and 3Y, VOO over 5Y and the full window. RMT is less concentrated, with 14.9% of the fund in its ten largest positions against 36.4%.

Lower Fees: VOOHigher Returns: splitLess Concentrated: RMT

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

MetricRMTVOO
Expense Ratio1.35%0.03%Best
AUM$477M$997.4B
Dividend Yield5.27%1.04%
Holdings171509
YTD Return+31.65%Best+12.50%
1Y Return+38.57%Best+17.58%
3Y Return (annualized)+24.98%Best+21.27%
5Y Return (annualized)+11.45%+12.95%Best
Volatility (annualized)21.9%14.1%Best
Max Drawdown-64.9%-34.3%Best
$10,000 over 5 years$17,195$18,384Best
Top 10 Weight14.9%Best36.4%
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryEquityEquity
StyleSmall Cap BlendLarge Cap Blend
InceptionDec 14, 1993Sep 7, 2010

Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 11, 2026 (16 years).

RMT 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 16 years both funds cover.

RMT vs VOO Performance

Royce Micro-Cap Trust Inc. (RMT) is an ETF from Franklin Templeton Investments (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year RMT returned +38.57% while VOO returned +17.58%. Year to date, RMT is up 31.65% versus a gain of 12.50% for VOO.

Over three years, RMT compounded at +24.98% per year against +21.27% for VOO; over five years the annualized figures are +11.45% and +12.95% respectively. Across the full 16-year window we track, VOO has the edge at +13.41% annualized vs +6.49%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RMT has been the more volatile fund, with annualized monthly volatility of 21.9% 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 -64.9% for RMT 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 0.83. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

RMT charges 1.35% per year while VOO charges 0.03%. On a $10,000 position that is $135 vs $3 annually, a gap of $132 per year that compounds over a long holding period. On income, RMT currently yields 5.27% against 1.04% for VOO.

Holdings Overlap

RMT already in VOO0.1%
VOO already in RMT0.1%

0.1% of RMT's money is in holdings VOO also owns. 0.1% of VOO's money is in holdings RMT also owns.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 169 positions we hold weights for in RMT and 505 in VOO, against full books of 171 and 509.

What only one of them owns

Our book lists 495 positions for VOO that do not appear in our book for RMT (99.4% of the fund), and 147 for RMT that do not appear in VOO (91.8%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in RMTWeight in VOODifference
CMGComputer Modelling Group0.06%0.07%0.01%

You are not choosing between two funds in isolation.

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

RMTVOO

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, RMT or VOO?

RMT has an expense ratio of 1.35% while VOO charges 0.03%. VOO is the cheaper option, by $132 a year on a $10,000 investment.

Which performed better, RMT or VOO?

Over the past year RMT returned +38.57% vs +17.58% for VOO, so RMT leads on 1-year performance. Over the longest common window we track (16 years), RMT annualized +6.49% vs +13.41% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, RMT or VOO?

RMT has been the more volatile fund at 21.9% annualized versus 14.1% for VOO. Worst drawdown: RMT -64.9% vs VOO -34.3%.

Should I hold both RMT and VOO?

RMT and VOO have a monthly-return correlation of 0.83, 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, RMT or VOO?

RMT yields 5.27% while VOO yields 1.04%, so RMT currently pays the higher dividend yield.

Is VOO better than RMT?

VOO has a lower expense ratio. RMT led over 1Y and 3Y, VOO over 5Y and the full window. RMT is less concentrated, with 14.9% of the fund in its ten largest positions against 36.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.