VBF vs VOO
Invesco Bond Fund vs Vanguard S&P 500 ETF
Which is better, VBF or VOO?
Long Term Mid Quality against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VBF | VOO |
|---|---|---|
| Expense Ratio | 0.54% | 0.03%Best |
| AUM | $4,400.74 | $997.4B |
| Dividend Yield | 5.14% | 1.04% |
| Holdings | 1,492 | 509 |
| YTD Return | -2.79% | +14.14%Best |
| 1Y Return | -4.01% | +17.31%Best |
| 3Y Return (annualized) | +5.09% | +23.16%Best |
| 5Y Return (annualized) | -2.52% | +13.85%Best |
| Volatility (annualized) | 10.2%Best | 14.1% |
| Max Drawdown | -34.1%Best | -34.3% |
| $10,000 over 5 years | $8,802 | $19,128Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Blend |
| Inception | Oct 28, 1970 | Sep 7, 2010 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 21, 2026 (16 years).
VBF vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VBF vs VOO Performance
Invesco Bond Fund (VBF) is an ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year VBF returned -4.01% while VOO returned +17.31%. Year to date, VBF is down 2.79% versus a gain of 14.14% for VOO.
Over three years, VBF compounded at +5.09% per year against +23.16% for VOO; over five years the annualized figures are -2.52% and +13.85% respectively. Across the full 16-year window we track, VOO has the edge at +13.49% annualized vs -0.54%.
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 10.2% for VBF. 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 -34.1% for VBF and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.40. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VBF charges 0.54% per year while VOO charges 0.03%. On a $10,000 position that is $54 vs $3 annually, a gap of $51 per year that compounds over a long holding period. On income, VBF currently yields 5.14% against 1.04% for VOO.
Holdings Overlap
At least 0.5% of VOO's money is in holdings VBF also owns.
Stated as a floor: for VBF, our book for it covers 61.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
The two holdings books were reported 153 days apart, VBF as of Feb 28, 2026 and VOO as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
3 positions in common, counted across the 1,017 positions we hold weights for in VBF and 494 in VOO, against full books of 1,492 and 509.
You are not choosing between two funds in isolation.
Whichever of VBF and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VBF or VOO?
VBF has an expense ratio of 0.54% while VOO charges 0.03%. VOO is the cheaper option, by $51 a year on a $10,000 investment.
Which performed better, VBF or VOO?
Over the past year VBF returned -4.01% vs +17.31% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VBF annualized -0.54% vs +13.49% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBF or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 10.2% for VBF. Worst drawdown: VBF -34.1% vs VOO -34.3%.
Should I hold both VBF and VOO?
VBF and VOO have a monthly-return correlation of 0.40, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VBF or VOO?
VBF yields 5.14% while VOO yields 1.04%, so VBF currently pays the higher dividend yield.
Is VOO better than VBF?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.