VKQ vs VOO
Invesco Municipal Trust vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VKQ offers more diversification with 537 holdings.
Side-by-Side Comparison
| Metric | VKQ | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.77% | 0.03% | |
| AUM | $2,913.25 | $997.4B | |
| Dividend Yield | 7.67% | 1.08% | |
| Holdings | 537 | 509 | |
| YTD Return | +4.69% | +12.25% | |
| 1Y Return | +15.17% | +20.92% | |
| 3Y Return (annualized) | +9.32% | +21.79% | |
| 5Y Return (annualized) | -1.11% | +13.05% | |
| Volatility (annualized) | 13.9% | 14.1% | |
| Max Drawdown | -58.5% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 27, 1991 | Sep 7, 2010 |
VKQ vs VOO Performance
Invesco Municipal Trust (VKQ) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VKQ returned +15.17% while VOO returned +20.92%. Year to date, VKQ is up 4.69% versus a gain of 12.25% for VOO.
Over three years, VKQ compounded at +9.32% per year against +21.79% for VOO; over five years the annualized figures are -1.11% and +13.05% respectively. Across the full 16-year window we track, VOO has the edge at +13.45% annualized vs -0.17%. 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 13.9% for VKQ. 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 VKQ 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VKQ charges 1.77% per year while VOO charges 0.03%. On a $10,000 position that is $177 vs $3 annually, a gap of $174 per year that compounds over a long holding period. On income, VKQ currently yields 7.67% against 1.08% for VOO.
Holdings Overlap
VKQ and VOO share 0 holdings out of 781 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, VKQ or VOO?
VKQ has an expense ratio of 1.77% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $174 per year of difference.
Which performed better, VKQ or VOO?
Over the past year VKQ returned +15.17% vs +20.92% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VKQ annualized -0.17% vs +13.45% for VOO. Past performance does not guarantee future results.
Which is riskier, VKQ or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 13.9% for VKQ. Worst drawdown: VKQ -58.5% vs VOO -34.3%.
Should I hold both VKQ and VOO?
VKQ and VOO have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VKQ and VOO?
VKQ and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 781 unique securities.
Which pays a higher dividend, VKQ or VOO?
VKQ yields 7.67% while VOO yields 1.08%, so VKQ currently pays the higher dividend yield.
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