VCEB vs VOO
Vanguard ESG US Corporate Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VCEB offers more diversification with 2566 holdings.
Side-by-Side Comparison
| Metric | VCEB | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.03% | |
| AUM | $1.2B | $979.0B | |
| Dividend Yield | 4.63% | 1.09% | |
| Holdings | 2,754 | 509 | |
| YTD Return | -3.51% | +13.79% | |
| 1Y Return | -1.34% | +23.01% | |
| 3Y Return (annualized) | +4.00% | +21.78% | |
| 5Y Return (annualized) | -0.54% | +13.39% | |
| Volatility (annualized) | 7.4% | 14.1% | |
| Max Drawdown | -21.7% | -34.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 22, 2020 | Sep 7, 2010 |
VCEB vs VOO Performance
Vanguard ESG US Corporate Bond ETF (VCEB) is a ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VCEB returned -1.34% while VOO returned +23.01%. Year to date, VCEB is down 3.51% versus a gain of 13.79% for VOO.
Over three years, VCEB compounded at +4.00% per year against +21.78% for VOO; over five years the annualized figures are -0.54% and +13.39% respectively. Across the full 6-year window we track, VOO has the edge at +13.57% annualized vs -0.38%. 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 7.4% for VCEB. 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 -21.7% for VCEB 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCEB charges 0.12% per year while VOO charges 0.03%. On a $10,000 position that is $12 vs $3 annually, a gap of $9 per year that compounds over a long holding period. On income, VCEB currently yields 4.63% against 1.09% for VOO.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, VCEB or VOO?
VCEB has an expense ratio of 0.12% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, VCEB or VOO?
Over the past year VCEB returned -1.34% vs +23.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (6 years), VCEB annualized -0.38% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, VCEB or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 7.4% for VCEB. Worst drawdown: VCEB -21.7% vs VOO -34.3%.
Should I hold both VCEB and VOO?
VCEB and VOO have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCEB and VOO?
VCEB and VOO share 2 common holdings with a 0.0% weight overlap. Combined, they hold 3069 unique securities.
Which pays a higher dividend, VCEB or VOO?
VCEB yields 4.63% while VOO yields 1.09%, so VCEB currently pays the higher dividend yield.
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