TLT vs VOO
iShares 20+ Year Treasury Bond 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 509 holdings.
Side-by-Side Comparison
| Metric | TLT | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $45.8B | $997.4B | |
| Dividend Yield | 4.72% | 1.08% | |
| Holdings | 48 | 509 | |
| YTD Return | -2.59% | +12.38% | |
| 1Y Return | -0.53% | +20.22% | |
| 3Y Return (annualized) | -0.18% | +21.79% | |
| 5Y Return (annualized) | -7.83% | +12.84% | |
| Volatility (annualized) | 13.4% | 14.1% | |
| Max Drawdown | -48.7% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 22, 2002 | Sep 7, 2010 |
TLT vs VOO Performance
iShares 20+ Year Treasury Bond ETF (TLT) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year TLT returned -0.53% while VOO returned +20.22%. Year to date, TLT is down 2.59% versus a gain of 12.38% for VOO.
Over three years, TLT compounded at -0.18% per year against +21.79% for VOO; over five years the annualized figures are -7.83% and +12.84% respectively. Across the full 16-year window we track, VOO has the edge at +13.45% annualized vs +0.82%. 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 13.4% for TLT. 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 -48.7% for TLT 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
TLT charges 0.15% per year while VOO charges 0.03%. On a $10,000 position that is $15 vs $3 annually, a gap of $12 per year that compounds over a long holding period. On income, TLT currently yields 4.72% against 1.08% for VOO.
Holdings Overlap
TLT and VOO share 0 holdings out of 549 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, TLT or VOO?
TLT has an expense ratio of 0.15% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, TLT or VOO?
Over the past year TLT returned -0.53% vs +20.22% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), TLT annualized +0.82% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, TLT or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 13.4% for TLT. Worst drawdown: TLT -48.7% vs VOO -34.3%.
Should I hold both TLT and VOO?
TLT 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 TLT and VOO?
TLT and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 549 unique securities.
Which pays a higher dividend, TLT or VOO?
TLT yields 4.72% while VOO yields 1.08%, so TLT currently pays the higher dividend yield.
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