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

MetricTBFVOOWinner
Expense Ratio0.95%0.03%
AUM$86M$979.0B
Dividend Yield2.80%1.09%
Holdings10509
YTD Return+5.57%+13.80%
1Y Return+6.88%+23.71%
3Y Return (annualized)+6.57%+21.50%
5Y Return (annualized)+11.85%+13.44%
Volatility (annualized)13.5%14.1%
Max Drawdown-71.2%-34.3%
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
InceptionAug 18, 2009Sep 7, 2010

TBF vs VOO Performance

ProShares Short 20+ Year Treasury (TBF) is a ETF from ProShares and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year TBF returned +6.88% while VOO returned +23.71%. Year to date, TBF is up 5.57% versus a gain of 13.80% for VOO.

Over three years, TBF compounded at +6.57% per year against +21.50% for VOO; over five years the annualized figures are +11.85% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs -3.12%. 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 13.5% for TBF. 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 -71.2% for TBF 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 0.04. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TBF charges 0.95% per year while VOO charges 0.03%. On a $10,000 position that is $95 vs $3 annually, a gap of $92 per year that compounds over a long holding period. On income, TBF currently yields 2.80% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

TBF 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, TBF or VOO?

TBF has an expense ratio of 0.95% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $92 per year of difference.

Which performed better, TBF or VOO?

Over the past year TBF returned +6.88% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), TBF annualized -3.12% vs +13.58% for VOO. Past performance does not guarantee future results.

Which is riskier, TBF or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 13.5% for TBF. Worst drawdown: TBF -71.2% vs VOO -34.3%.

Should I hold both TBF and VOO?

TBF and VOO have a monthly-return correlation of 0.04, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TBF and VOO?

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

Which pays a higher dividend, TBF or VOO?

TBF yields 2.80% while VOO yields 1.09%, so TBF currently pays the higher dividend yield.

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