VABS vs VOO
Virtus Newfleet ABS/MBS 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 | VABS | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $112M | $979.0B | |
| Dividend Yield | 5.18% | 1.09% | |
| Holdings | 131 | 509 | |
| YTD Return | +2.37% | +13.79% | |
| 1Y Return | +3.50% | +23.01% | |
| 3Y Return (annualized) | +6.32% | +21.78% | |
| 5Y Return (annualized) | +3.37% | +13.39% | |
| Volatility (annualized) | 2.1% | 14.1% | |
| Max Drawdown | -7.1% | -34.3% | |
| Fund Family | Virtus Investment Partners | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 9, 2021 | Sep 7, 2010 |
VABS vs VOO Performance
Virtus Newfleet ABS/MBS ETF (VABS) is a ETF from Virtus Investment Partners and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VABS returned +3.50% while VOO returned +23.01%. Year to date, VABS is up 2.37% versus a gain of 13.79% for VOO.
Over three years, VABS compounded at +6.32% per year against +21.78% for VOO; over five years the annualized figures are +3.37% and +13.39% respectively. Across the full 6-year window we track, VOO has the edge at +13.57% annualized vs +3.20%. 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 2.1% for VABS. 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 -7.1% for VABS 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VABS charges 0.39% per year while VOO charges 0.03%. On a $10,000 position that is $39 vs $3 annually, a gap of $36 per year that compounds over a long holding period. On income, VABS currently yields 5.18% against 1.09% for VOO.
Frequently Asked Questions
Which is cheaper, VABS or VOO?
VABS has an expense ratio of 0.39% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, VABS or VOO?
Over the past year VABS returned +3.50% vs +23.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (6 years), VABS annualized +3.20% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, VABS or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 2.1% for VABS. Worst drawdown: VABS -7.1% vs VOO -34.3%.
Should I hold both VABS and VOO?
VABS and VOO have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, VABS or VOO?
VABS yields 5.18% while VOO yields 1.09%, so VABS currently pays the higher dividend yield.
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