TDTF vs VOO
FlexShares iBoxx 5 Year Target Duration TIPS Index 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 505 holdings.
Side-by-Side Comparison
| Metric | TDTF | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.03% | |
| AUM | $1.0B | $979.0B | |
| Dividend Yield | 4.73% | 1.09% | |
| Holdings | 18 | 509 | |
| YTD Return | +0.33% | +13.79% | |
| 1Y Return | +1.24% | +23.01% | |
| 3Y Return (annualized) | +4.35% | +21.78% | |
| 5Y Return (annualized) | +1.06% | +13.39% | |
| Volatility (annualized) | 4.3% | 14.1% | |
| Max Drawdown | -12.0% | -34.3% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 19, 2011 | Sep 7, 2010 |
TDTF vs VOO Performance
FlexShares iBoxx 5 Year Target Duration TIPS Index Fund (TDTF) is a ETF from Flexshares Trust and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year TDTF returned +1.24% while VOO returned +23.01%. Year to date, TDTF is up 0.33% versus a gain of 13.79% for VOO.
Over three years, TDTF compounded at +4.35% per year against +21.78% for VOO; over five years the annualized figures are +1.06% and +13.39% respectively. Across the full 15-year window we track, VOO has the edge at +13.57% annualized vs +1.30%. 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 4.3% for TDTF. 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 -12.0% for TDTF 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TDTF charges 0.18% per year while VOO charges 0.03%. On a $10,000 position that is $18 vs $3 annually, a gap of $15 per year that compounds over a long holding period. On income, TDTF currently yields 4.73% against 1.09% for VOO.
Holdings Overlap
TDTF and VOO share 0 holdings out of 519 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, TDTF or VOO?
TDTF has an expense ratio of 0.18% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, TDTF or VOO?
Over the past year TDTF returned +1.24% vs +23.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (15 years), TDTF annualized +1.30% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, TDTF or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 4.3% for TDTF. Worst drawdown: TDTF -12.0% vs VOO -34.3%.
Should I hold both TDTF and VOO?
TDTF and VOO have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TDTF and VOO?
TDTF and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 519 unique securities.
Which pays a higher dividend, TDTF or VOO?
TDTF yields 4.73% while VOO yields 1.09%, so TDTF currently pays the higher dividend yield.
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