VLT vs VOO
Invesco High Income Trust II 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 | VLT | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.95% | 0.03% | |
| AUM | $3,093.5 | $979.0B | |
| Dividend Yield | 10.36% | 1.09% | |
| Holdings | 270 | 509 | |
| YTD Return | -3.73% | +13.79% | |
| 1Y Return | +1.04% | +23.01% | |
| 3Y Return (annualized) | +8.71% | +21.78% | |
| 5Y Return (annualized) | +2.30% | +13.39% | |
| Volatility (annualized) | 19.9% | 14.1% | |
| Max Drawdown | -89.4% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 28, 1989 | Sep 7, 2010 |
VLT vs VOO Performance
Invesco High Income Trust II (VLT) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VLT returned +1.04% while VOO returned +23.01%. Year to date, VLT is down 3.73% versus a gain of 13.79% for VOO.
Over three years, VLT compounded at +8.71% per year against +21.78% for VOO; over five years the annualized figures are +2.30% and +13.39% respectively. Across the full 16-year window we track, VOO has the edge at +13.57% annualized vs -2.92%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VLT has been the more volatile fund, with annualized monthly volatility of 19.9% 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 -89.4% for VLT 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VLT charges 1.95% per year while VOO charges 0.03%. On a $10,000 position that is $195 vs $3 annually, a gap of $192 per year that compounds over a long holding period. On income, VLT currently yields 10.36% against 1.09% for VOO.
Holdings Overlap
VLT and VOO share 0 holdings out of 703 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, VLT or VOO?
VLT has an expense ratio of 1.95% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $192 per year of difference.
Which performed better, VLT or VOO?
Over the past year VLT returned +1.04% vs +23.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VLT annualized -2.92% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, VLT or VOO?
VLT has been the more volatile fund at 19.9% annualized versus 14.1% for VOO. Worst drawdown: VLT -89.4% vs VOO -34.3%.
Should I hold both VLT and VOO?
VLT and VOO have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VLT and VOO?
VLT and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 703 unique securities.
Which pays a higher dividend, VLT or VOO?
VLT yields 10.36% while VOO yields 1.09%, so VLT currently pays the higher dividend yield.
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