UTWO vs VOO
F/m US Treasury 2 Year Note 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 | UTWO | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.03% | |
| AUM | $482M | $979.0B | |
| Dividend Yield | 3.82% | 1.09% | |
| Holdings | 2 | 509 | |
| YTD Return | +0.82% | +13.72% | |
| 1Y Return | +2.60% | +21.63% | |
| 3Y Return (annualized) | +4.03% | +21.55% | |
| 5Y Return (annualized) | - | +13.26% | |
| Volatility (annualized) | 1.9% | 14.1% | |
| Max Drawdown | -2.0% | -34.3% | |
| Fund Family | US Benchmark Series | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 8, 2022 | Sep 7, 2010 |
UTWO vs VOO Performance
F/m US Treasury 2 Year Note ETF (UTWO) is a ETF from US Benchmark Series and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year UTWO returned +2.60% while VOO returned +21.63%. Year to date, UTWO is up 0.82% versus a gain of 13.72% for VOO.
Over three years, UTWO compounded at +4.03% per year against +21.55% for VOO. Across the full 4-year window we track, VOO has the edge at +13.56% annualized vs +2.97%. 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 1.9% for UTWO. 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 -2.0% for UTWO 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
UTWO 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, UTWO currently yields 3.82% against 1.09% for VOO.
Holdings Overlap
UTWO 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, UTWO or VOO?
UTWO 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, UTWO or VOO?
Over the past year UTWO returned +2.60% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (4 years), UTWO annualized +2.97% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, UTWO or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 1.9% for UTWO. Worst drawdown: UTWO -2.0% vs VOO -34.3%.
Should I hold both UTWO and VOO?
UTWO and VOO have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between UTWO and VOO?
UTWO and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, UTWO or VOO?
UTWO yields 3.82% while VOO yields 1.09%, so UTWO currently pays the higher dividend yield.
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