VCV vs VOO
Invesco California Value Municipal Income Trust 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 | VCV | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 3.57% | 0.03% | |
| AUM | $3,027.72 | $979.0B | |
| Dividend Yield | 7.48% | 1.09% | |
| Holdings | 346 | 509 | |
| YTD Return | -0.33% | +13.79% | |
| 1Y Return | +11.95% | +23.01% | |
| 3Y Return (annualized) | +10.40% | +21.78% | |
| 5Y Return (annualized) | -0.11% | +13.39% | |
| Volatility (annualized) | 14.3% | 14.1% | |
| Max Drawdown | -63.9% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 30, 1993 | Sep 7, 2010 |
VCV vs VOO Performance
Invesco California Value Municipal Income Trust (VCV) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VCV returned +11.95% while VOO returned +23.01%. Year to date, VCV is down 0.33% versus a gain of 13.79% for VOO.
Over three years, VCV compounded at +10.40% per year against +21.78% for VOO; over five years the annualized figures are -0.11% and +13.39% respectively. Across the full 16-year window we track, VOO has the edge at +13.57% annualized vs +0.52%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VCV has been the more volatile fund, with annualized monthly volatility of 14.3% compared with 14.1% for VOO. 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 -63.9% for VCV 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCV charges 3.57% per year while VOO charges 0.03%. On a $10,000 position that is $357 vs $3 annually, a gap of $354 per year that compounds over a long holding period. On income, VCV currently yields 7.48% against 1.09% for VOO.
Holdings Overlap
VCV and VOO share 0 holdings out of 593 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, VCV or VOO?
VCV has an expense ratio of 3.57% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $354 per year of difference.
Which performed better, VCV or VOO?
Over the past year VCV returned +11.95% vs +23.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VCV annualized +0.52% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, VCV or VOO?
VCV has been the more volatile fund at 14.3% annualized versus 14.1% for VOO. Worst drawdown: VCV -63.9% vs VOO -34.3%.
Should I hold both VCV and VOO?
VCV and VOO have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCV and VOO?
VCV and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 593 unique securities.
Which pays a higher dividend, VCV or VOO?
VCV yields 7.48% while VOO yields 1.09%, so VCV currently pays the higher dividend yield.
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