SUB vs VOO
SUB vs VOO
iShares Short-Term National Muni Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. SUB offers more diversification with 783 holdings.
Side-by-Side Comparison
| Metric | SUB | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.03% | |
| AUM | $11.3B | $979.0B | |
| Dividend Yield | 2.52% | 1.09% | |
| Holdings | 2,925 | 509 | |
| YTD Return | +0.84% | +13.80% | |
| 1Y Return | +1.82% | +23.71% | |
| 3Y Return (annualized) | +3.08% | +21.50% | |
| 5Y Return (annualized) | +1.43% | +13.44% | |
| Volatility (annualized) | 1.7% | 14.1% | |
| Max Drawdown | -11.7% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 5, 2008 | Sep 7, 2010 |
SUB vs VOO Performance
iShares Short-Term National Muni Bond ETF (SUB) 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 SUB returned +1.82% while VOO returned +23.71%. Year to date, SUB is up 0.84% versus a gain of 13.80% for VOO.
Over three years, SUB compounded at +3.08% per year against +21.50% for VOO; over five years the annualized figures are +1.43% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs +0.81%. 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 1.7% for SUB. 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 -11.7% for SUB 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SUB charges 0.07% per year while VOO charges 0.03%. On a $10,000 position that is $7 vs $3 annually, a gap of $4 per year that compounds over a long holding period. On income, SUB currently yields 2.52% against 1.09% for VOO.
Holdings Overlap
SUB and VOO share 0 holdings out of 1288 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, SUB or VOO?
SUB has an expense ratio of 0.07% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, SUB or VOO?
Over the past year SUB returned +1.82% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), SUB annualized +0.81% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, SUB or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 1.7% for SUB. Worst drawdown: SUB -11.7% vs VOO -34.3%.
Should I hold both SUB and VOO?
SUB and VOO have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SUB and VOO?
SUB and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1288 unique securities.
Which pays a higher dividend, SUB or VOO?
SUB yields 2.52% while VOO yields 1.09%, so SUB currently pays the higher dividend yield.
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