SABA vs VOO
Saba Capital Income & Opportunities Fund II 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 | SABA | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.03% | |
| AUM | $255M | $979.0B | |
| Dividend Yield | 8.41% | 1.09% | |
| Holdings | 740 | 509 | |
| YTD Return | +5.52% | +13.80% | |
| 1Y Return | -1.67% | +23.71% | |
| 3Y Return (annualized) | +9.63% | +21.50% | |
| 5Y Return (annualized) | +3.59% | +13.44% | |
| Volatility (annualized) | 13.2% | 14.1% | |
| Max Drawdown | -62.0% | -34.3% | |
| Fund Family | Saba Capital | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 17, 1988 | Sep 7, 2010 |
SABA vs VOO Performance
Saba Capital Income & Opportunities Fund II (SABA) is a ETF from Saba Capital and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year SABA returned -1.67% while VOO returned +23.71%. Year to date, SABA is up 5.52% versus a gain of 13.80% for VOO.
Over three years, SABA compounded at +9.63% per year against +21.50% for VOO; over five years the annualized figures are +3.59% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs -0.17%. 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 13.2% for SABA. 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 -62.0% for SABA 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SABA charges 0.71% per year while VOO charges 0.03%. On a $10,000 position that is $71 vs $3 annually, a gap of $68 per year that compounds over a long holding period. On income, SABA currently yields 8.41% against 1.09% for VOO.
Holdings Overlap
SABA and VOO share 76 holdings out of 808 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SABA or VOO?
SABA has an expense ratio of 0.71% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $68 per year of difference.
Which performed better, SABA or VOO?
Over the past year SABA returned -1.67% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), SABA annualized -0.17% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, SABA or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 13.2% for SABA. Worst drawdown: SABA -62.0% vs VOO -34.3%.
Should I hold both SABA and VOO?
SABA and VOO have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SABA and VOO?
SABA and VOO share 76 common holdings with a 0.2% weight overlap. Combined, they hold 808 unique securities.
Which pays a higher dividend, SABA or VOO?
SABA yields 8.41% while VOO yields 1.09%, so SABA currently pays the higher dividend yield.
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