SHYD vs VOO
VanEck Short High Yield Muni 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 | SHYD | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.03% | |
| AUM | $451M | $979.0B | |
| Dividend Yield | 3.49% | 1.09% | |
| Holdings | 541 | 509 | |
| YTD Return | -0.57% | +14.48% | |
| 1Y Return | +1.44% | +22.02% | |
| 3Y Return (annualized) | +3.61% | +21.80% | |
| 5Y Return (annualized) | +0.30% | +13.36% | |
| Volatility (annualized) | 5.7% | 14.2% | |
| Max Drawdown | -31.2% | -34.3% | |
| Fund Family | VanEck | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jan 13, 2014 | Sep 7, 2010 |
SHYD vs VOO Performance
VanEck Short High Yield Muni ETF (SHYD) is a ETF from VanEck and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year SHYD returned +1.44% while VOO returned +22.02%. Year to date, SHYD is down 0.57% versus a gain of 14.48% for VOO.
Over three years, SHYD compounded at +3.61% per year against +21.80% for VOO; over five years the annualized figures are +0.30% and +13.36% respectively. Across the full 13-year window we track, VOO has the edge at +13.61% annualized vs +2.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 5.7% for SHYD. 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 -31.2% for SHYD 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SHYD charges 0.32% per year while VOO charges 0.03%. On a $10,000 position that is $32 vs $3 annually, a gap of $29 per year that compounds over a long holding period. On income, SHYD currently yields 3.49% against 1.09% for VOO.
Holdings Overlap
SHYD and VOO share 0 holdings out of 657 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, SHYD or VOO?
SHYD has an expense ratio of 0.32% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, SHYD or VOO?
Over the past year SHYD returned +1.44% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (13 years), SHYD annualized +2.10% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, SHYD or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 5.7% for SHYD. Worst drawdown: SHYD -31.2% vs VOO -34.3%.
Should I hold both SHYD and VOO?
SHYD and VOO have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SHYD and VOO?
SHYD and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 657 unique securities.
Which pays a higher dividend, SHYD or VOO?
SHYD yields 3.49% while VOO yields 1.09%, so SHYD currently pays the higher dividend yield.
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