VGM vs VOO
Invesco Trust for Investment Grade Municipals 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 | VGM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 3.13% | 0.03% | |
| AUM | $3,008.32 | $979.0B | |
| Dividend Yield | 7.40% | 1.09% | |
| Holdings | 534 | 509 | |
| YTD Return | +5.65% | +14.48% | |
| 1Y Return | +17.19% | +22.02% | |
| 3Y Return (annualized) | +10.78% | +21.80% | |
| 5Y Return (annualized) | +0.23% | +13.36% | |
| Volatility (annualized) | 12.4% | 14.2% | |
| Max Drawdown | -58.5% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 24, 1992 | Sep 7, 2010 |
VGM vs VOO Performance
Invesco Trust for Investment Grade Municipals (VGM) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VGM returned +17.19% while VOO returned +22.02%. Year to date, VGM is up 5.65% versus a gain of 14.48% for VOO.
Over three years, VGM compounded at +10.78% per year against +21.80% for VOO; over five years the annualized figures are +0.23% and +13.36% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs -0.25%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 12.4% for VGM. 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 -58.5% for VGM 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
VGM charges 3.13% per year while VOO charges 0.03%. On a $10,000 position that is $313 vs $3 annually, a gap of $310 per year that compounds over a long holding period. On income, VGM currently yields 7.40% against 1.09% for VOO.
Holdings Overlap
VGM and VOO share 0 holdings out of 775 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, VGM or VOO?
VGM has an expense ratio of 3.13% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $310 per year of difference.
Which performed better, VGM or VOO?
Over the past year VGM returned +17.19% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VGM annualized -0.25% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, VGM or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 12.4% for VGM. Worst drawdown: VGM -58.5% vs VOO -34.3%.
Should I hold both VGM and VOO?
VGM and VOO have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGM and VOO?
VGM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 775 unique securities.
Which pays a higher dividend, VGM or VOO?
VGM yields 7.40% while VOO yields 1.09%, so VGM currently pays the higher dividend yield.
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