TBT vs VOO
ProShares UltraShort 20+ Year Treasury 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 | TBT | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.93% | 0.03% | |
| AUM | $297M | $979.0B | |
| Dividend Yield | 2.78% | 1.09% | |
| Holdings | 10 | 509 | |
| YTD Return | +9.89% | +14.48% | |
| 1Y Return | +10.52% | +22.02% | |
| 3Y Return (annualized) | +7.27% | +21.80% | |
| 5Y Return (annualized) | +19.94% | +13.36% | |
| Volatility (annualized) | 28.1% | 14.2% | |
| Max Drawdown | -95.2% | -34.3% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Apr 29, 2008 | Sep 7, 2010 |
TBT vs VOO Performance
ProShares UltraShort 20+ Year Treasury ETF (TBT) is a ETF from ProShares and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year TBT returned +10.52% while VOO returned +22.02%. Year to date, TBT is up 9.89% versus a gain of 14.48% for VOO.
Over three years, TBT compounded at +7.27% per year against +21.80% for VOO; over five years the annualized figures are +19.94% and +13.36% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs -9.62%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TBT has been the more volatile fund, with annualized monthly volatility of 28.1% compared with 14.2% for VOO. 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 -95.2% for TBT 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 0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TBT charges 0.93% per year while VOO charges 0.03%. On a $10,000 position that is $93 vs $3 annually, a gap of $90 per year that compounds over a long holding period. On income, TBT currently yields 2.78% against 1.09% for VOO.
Holdings Overlap
TBT 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, TBT or VOO?
TBT has an expense ratio of 0.93% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $90 per year of difference.
Which performed better, TBT or VOO?
Over the past year TBT returned +10.52% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), TBT annualized -9.62% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, TBT or VOO?
TBT has been the more volatile fund at 28.1% annualized versus 14.2% for VOO. Worst drawdown: TBT -95.2% vs VOO -34.3%.
Should I hold both TBT and VOO?
TBT and VOO have a monthly-return correlation of 0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TBT and VOO?
TBT and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, TBT or VOO?
TBT yields 2.78% while VOO yields 1.09%, so TBT currently pays the higher dividend yield.
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