SOFR vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricSOFRVOOWinner
Expense Ratio0.20%0.03%
AUM$453M$979.0B
Dividend Yield4.20%1.09%
Holdings6509
YTD Return+2.16%+13.79%
1Y Return+3.83%+23.01%
3Y Return (annualized)-+21.78%
5Y Return (annualized)-+13.39%
Volatility (annualized)0.4%14.1%
Max Drawdown-0.4%-34.3%
Fund FamilyAmplify ETFsVanguard (US)
CategoryAlternativeEquity
InceptionNov 15, 2023Sep 7, 2010

SOFR vs VOO Performance

Amplify Samsung SOFR ETF (SOFR) is a ETF from Amplify ETFs and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year SOFR returned +3.83% while VOO returned +23.01%. Year to date, SOFR is up 2.16% versus a gain of 13.79% for VOO.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 0.4% for SOFR. 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 -0.4% for SOFR 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SOFR charges 0.20% per year while VOO charges 0.03%. On a $10,000 position that is $20 vs $3 annually, a gap of $17 per year that compounds over a long holding period. On income, SOFR currently yields 4.20% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

SOFR and VOO share 0 holdings out of 506 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, SOFR or VOO?

SOFR has an expense ratio of 0.20% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $17 per year of difference.

Which performed better, SOFR or VOO?

Over the past year SOFR returned +3.83% vs +23.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), SOFR annualized +4.53% vs +13.57% for VOO. Past performance does not guarantee future results.

Which is riskier, SOFR or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 0.4% for SOFR. Worst drawdown: SOFR -0.4% vs VOO -34.3%.

Should I hold both SOFR and VOO?

SOFR and VOO have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SOFR and VOO?

SOFR and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.

Which pays a higher dividend, SOFR or VOO?

SOFR yields 4.20% while VOO yields 1.09%, so SOFR currently pays the higher dividend yield.

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