VFIAX vs VOO
Vanguard 500 Index Fund Admiral Class vs Vanguard S&P 500 ETF
Which is better, VFIAX or VOO?
Nearly the same fund. VOO costs less.
VOO has a lower expense ratio. VFIAX led over 1Y and the full window, VOO over 3Y and 5Y. The two have moved almost in lockstep, correlation 1.00. VFIAX is less concentrated, with 36.3% of the fund in its ten largest positions against 37.6%.
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 | VFIAX | VOO |
|---|---|---|
| Expense Ratio | 0.04% | 0.03%Best |
| AUM | $677.6B | $997.4B |
| Dividend Yield | 1.03% | 1.04% |
| Holdings | 506 | 509 |
| YTD Price Return | +11.57% | +11.70%Best |
| 1Y Price Return | +15.67%Best | +15.25% |
| 3Y Price Return (annualized) | +19.68% | +19.79%Best |
| 5Y Price Return (annualized) | +11.88% | +11.89%Best |
| Volatility (annualized) | 15.6%Best | 15.8% |
| Max Drawdown | -25.4%Tie | -25.4%Tie |
| $10,000 over 5 years | $17,529 | $17,537Best |
| Top 10 Weight | 36.3%Best | 37.6% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Nov 13, 2000 | Sep 7, 2010 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VFIAX. Both funds are measured the same way, so the comparison holds. VFIAX yields 1.03% and VOO 1.04% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 17, 2026 (5 years).
VFIAX 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 covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
VFIAX vs VOO Performance
Vanguard 500 Index Fund Admiral Class (VFIAX) is a mutual fund from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year VFIAX returned +15.67% while VOO returned +15.25%. Year to date, VFIAX is up 11.57% versus a gain of 11.70% for VOO.
Over three years, VFIAX compounded at +19.68% per year against +19.79% for VOO; over five years the annualized figures are +11.88% and +11.89% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 15.6% for VFIAX. 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 -25.4% for VFIAX and -25.4% 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 1.00. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VFIAX charges 0.04% per year while VOO charges 0.03%. On a $10,000 position that is $4 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, VFIAX currently yields 1.03% against 1.04% for VOO.
Structure and taxes
VFIAX is a mutual fund and VOO is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
96.3% of VFIAX's money is in holdings VOO also owns. 96.5% of VOO's money is in holdings VFIAX also owns.
Most of VOO is already inside VFIAX. Owning both mostly buys the same companies twice.
485 positions in common, counted across the 500 positions we hold weights for in VFIAX and 494 in VOO, against full books of 506 and 509.
What only one of them owns
Our book lists 6 positions for VOO that do not appear in our book for VFIAX (2.9% of the fund), and 12 for VFIAX that do not appear in VOO (0.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VFIAX | Weight in VOO | Difference |
|---|---|---|---|
| NVDANvidia Corp | 7.50% | 7.55% | 0.05% |
| AAPLApple, Inc | 6.57% | 7.05% | 0.48% |
| MSFTMicrosoft Corp | 4.29% | 5.36% | 1.07% |
| AMZNAmazon.Com Inc | 3.61% | 4.13% | 0.52% |
| GOOGLAlphabet Inc,class A | 3.24% | 3.24% | 0.00% |
| AVGOBroadcom Inc | 2.77% | 2.86% | 0.09% |
| GOOGAlphabet Inc | 2.58% | 2.62% | 0.04% |
| METAMeta Platforms Inc | 1.91% | 1.90% | 0.01% |
| MUMicron Technology, Inc. | 2.01% | 1.44% | 0.57% |
| TSLATesla Inc | 1.83% | 1.36% | 0.47% |
96.5% of VOO is already inside VFIAX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VFIAX or VOO?
VFIAX has an expense ratio of 0.04% while VOO charges 0.03%. VOO is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VFIAX or VOO?
Over the past year VFIAX returned +15.67% vs +15.25% for VOO, so VFIAX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VFIAX or VOO?
VOO has been the more volatile fund at 15.8% annualized versus 15.6% for VFIAX. Worst drawdown: VFIAX -25.4% vs VOO -25.4%.
Should I hold both VFIAX and VOO?
VFIAX and VOO have a monthly-return correlation of 1.00, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between VFIAX and VOO?
96.5% of VOO's money is in holdings VFIAX also owns. 96.5% of VOO's is in holdings VFIAX also owns. They hold 485 positions in common, counted across the 500 positions we hold weights for in VFIAX and 494 in VOO.
Which pays a higher dividend, VFIAX or VOO?
VFIAX yields 1.03% while VOO yields 1.04%, so VOO currently pays the higher dividend yield.
Is it better to hold VFIAX or VOO in a taxable account?
VOO is an ETF and VFIAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VOO better than VFIAX?
VOO has a lower expense ratio. VFIAX led over 1Y and the full window, VOO over 3Y and 5Y. The two have moved almost in lockstep, correlation 1.00. VFIAX is less concentrated, with 36.3% of the fund in its ten largest positions against 37.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.