VLT vs VOO

VLT vs VOO

Which is better, VLT or VOO?

High Yield Bond against Large Cap Blend.

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VOOHigher Returns: VOO

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

MetricVLTVOO
Expense Ratio1.95%0.03%Best
AUM$3,093.5$997.4B
Dividend Yield10.38%1.04%
Holdings270509
YTD Return-8.76%+14.14%Best
1Y Return-7.18%+17.31%Best
3Y Return (annualized)+8.63%+23.16%Best
5Y Return (annualized)+1.60%+13.85%Best
Volatility (annualized)13.2%Best14.1%
Max Drawdown-56.1%-34.3%Best
$10,000 over 5 years$10,826$19,128Best
Fund FamilyInvesco (US)Vanguard (US)
CategoryFixed IncomeEquity
StyleHigh Yield BondLarge Cap Blend
InceptionApr 28, 1989Sep 7, 2010

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 21, 2026 (16 years).

VLT 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

VLT vs VOO Performance

Invesco High Income Trust II (VLT) is an ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year VLT returned -7.18% while VOO returned +17.31%. Year to date, VLT is down 8.76% versus a gain of 14.14% for VOO.

Over three years, VLT compounded at +8.63% per year against +23.16% for VOO; over five years the annualized figures are +1.60% and +13.85% respectively. Across the full 16-year window we track, VOO has the edge at +13.49% annualized vs +0.26%.

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 13.2% for VLT. 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 -56.1% for VLT and -34.3% 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 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 10.38% against 1.04% for VOO.

You are not choosing between two funds in isolation.

Whichever of VLT and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

VLTVOO

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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, by $192 a year on a $10,000 investment.

Which performed better, VLT or VOO?

Over the past year VLT returned -7.18% vs +17.31% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VLT annualized +0.26% vs +13.49% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, VLT or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 13.2% for VLT. Worst drawdown: VLT -56.1% vs VOO -34.3%.

Should I hold both VLT and VOO?

VLT and VOO have a monthly-return correlation of 0.70, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, VLT or VOO?

VLT yields 10.38% while VOO yields 1.04%, so VLT currently pays the higher dividend yield.

Is VOO better than VLT?

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.