TEI vs VOO
Templeton Emerging Markets Income Fund Inc. vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. TEI delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | TEI | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.14% | 0.03% | |
| AUM | $2,711.9 | $979.0B | |
| Dividend Yield | 12.41% | 1.09% | |
| Holdings | 151 | 509 | |
| YTD Return | +10.35% | +13.44% | |
| 1Y Return | +28.99% | +22.62% | |
| 3Y Return (annualized) | +23.68% | +21.47% | |
| 5Y Return (annualized) | +8.67% | +13.27% | |
| Volatility (annualized) | 17.9% | 14.1% | |
| Max Drawdown | -71.1% | -34.3% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 23, 1993 | Sep 7, 2010 |
TEI vs VOO Performance
Templeton Emerging Markets Income Fund Inc. (TEI) 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 TEI returned +28.99% while VOO returned +22.62%. Year to date, TEI is up 10.35% versus a gain of 13.44% for VOO.
Over three years, TEI compounded at +23.68% per year against +21.47% for VOO; over five years the annualized figures are +8.67% and +13.27% respectively. Across the full 16-year window we track, VOO has the edge at +13.55% annualized vs +0.40%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TEI has been the more volatile fund, with annualized monthly volatility of 17.9% compared with 14.1% 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 -71.1% for TEI 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TEI charges 1.14% per year while VOO charges 0.03%. On a $10,000 position that is $114 vs $3 annually, a gap of $111 per year that compounds over a long holding period. On income, TEI currently yields 12.41% against 1.09% for VOO.
Holdings Overlap
TEI and VOO share 0 holdings out of 525 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, TEI or VOO?
TEI has an expense ratio of 1.14% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $111 per year of difference.
Which performed better, TEI or VOO?
Over the past year TEI returned +28.99% vs +22.62% for VOO, so TEI leads on 1-year performance. Over the longest common window we track (16 years), TEI annualized +0.40% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, TEI or VOO?
TEI has been the more volatile fund at 17.9% annualized versus 14.1% for VOO. Worst drawdown: TEI -71.1% vs VOO -34.3%.
Should I hold both TEI and VOO?
TEI and VOO have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TEI and VOO?
TEI and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 525 unique securities.
Which pays a higher dividend, TEI or VOO?
TEI yields 12.41% while VOO yields 1.09%, so TEI currently pays the higher dividend yield.
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