VMO vs VOO
Invesco Municipal Opportunity Trust 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 | VMO | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.86% | 0.03% | |
| AUM | $2,934.54 | $979.0B | |
| Dividend Yield | 7.43% | 1.09% | |
| Holdings | 544 | 509 | |
| YTD Return | +7.19% | +13.80% | |
| 1Y Return | +15.33% | +23.71% | |
| 3Y Return (annualized) | +9.09% | +21.50% | |
| 5Y Return (annualized) | -0.53% | +13.44% | |
| Volatility (annualized) | 12.2% | 14.1% | |
| Max Drawdown | -60.0% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 24, 1992 | Sep 7, 2010 |
VMO vs VOO Performance
Invesco Municipal Opportunity Trust (VMO) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VMO returned +15.33% while VOO returned +23.71%. Year to date, VMO is up 7.19% versus a gain of 13.80% for VOO.
Over three years, VMO compounded at +9.09% per year against +21.50% for VOO; over five years the annualized figures are -0.53% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs -0.05%. 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 12.2% for VMO. 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 -60.0% for VMO 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VMO charges 1.86% per year while VOO charges 0.03%. On a $10,000 position that is $186 vs $3 annually, a gap of $183 per year that compounds over a long holding period. On income, VMO currently yields 7.43% against 1.09% for VOO.
Holdings Overlap
VMO and VOO share 0 holdings out of 778 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, VMO or VOO?
VMO has an expense ratio of 1.86% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $183 per year of difference.
Which performed better, VMO or VOO?
Over the past year VMO returned +15.33% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VMO annualized -0.05% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, VMO or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 12.2% for VMO. Worst drawdown: VMO -60.0% vs VOO -34.3%.
Should I hold both VMO and VOO?
VMO and VOO have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VMO and VOO?
VMO and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 778 unique securities.
Which pays a higher dividend, VMO or VOO?
VMO yields 7.43% while VOO yields 1.09%, so VMO currently pays the higher dividend yield.
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