TDF vs VOO
Templeton Dragon Fund 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 509 holdings.
Side-by-Side Comparison
| Metric | TDF | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.33% | 0.03% | |
| AUM | $5,054.4 | $997.4B | |
| Dividend Yield | 3.61% | 1.08% | |
| Holdings | 68 | 509 | |
| YTD Return | -5.17% | +14.27% | |
| 1Y Return | +7.13% | +21.79% | |
| 3Y Return (annualized) | +8.81% | +22.19% | |
| 5Y Return (annualized) | -6.58% | +13.28% | |
| Volatility (annualized) | 26.9% | 14.2% | |
| Max Drawdown | -75.1% | -34.3% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 8, 1994 | Sep 7, 2010 |
TDF vs VOO Performance
Templeton Dragon Fund (TDF) is a ETF from Franklin Templeton Investments (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year TDF returned +7.13% while VOO returned +21.79%. Year to date, TDF is down 5.17% versus a gain of 14.27% for VOO.
Over three years, TDF compounded at +8.81% per year against +22.19% for VOO; over five years the annualized figures are -6.58% and +13.28% respectively. Across the full 16-year window we track, VOO has the edge at +13.59% annualized vs +0.27%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TDF has been the more volatile fund, with annualized monthly volatility of 26.9% 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 -75.1% for TDF 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
TDF charges 1.33% per year while VOO charges 0.03%. On a $10,000 position that is $133 vs $3 annually, a gap of $130 per year that compounds over a long holding period. On income, TDF currently yields 3.61% against 1.08% for VOO.
Holdings Overlap
TDF and VOO share 0 holdings out of 567 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, TDF or VOO?
TDF has an expense ratio of 1.33% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $130 per year of difference.
Which performed better, TDF or VOO?
Over the past year TDF returned +7.13% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), TDF annualized +0.27% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, TDF or VOO?
TDF has been the more volatile fund at 26.9% annualized versus 14.2% for VOO. Worst drawdown: TDF -75.1% vs VOO -34.3%.
Should I hold both TDF and VOO?
TDF 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 TDF and VOO?
TDF and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 567 unique securities.
Which pays a higher dividend, TDF or VOO?
TDF yields 3.61% while VOO yields 1.08%, so TDF currently pays the higher dividend yield.
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