VOO vs VTEL
Vanguard S&P 500 ETF vs Vanguard Long-Term Tax-Exempt Bond ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VTEL offers more diversification with 1417 holdings.
Side-by-Side Comparison
| Metric | VOO | VTEL | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $979.0B | $288M | |
| Dividend Yield | 1.09% | 3.78% | |
| Holdings | 509 | 6,215 | |
| YTD Return | +13.44% | -1.08% | |
| 1Y Return | +22.62% | +4.89% | |
| 3Y Return (annualized) | +21.47% | - | |
| 5Y Return (annualized) | +13.27% | - | |
| Volatility (annualized) | 14.1% | 5.4% | |
| Max Drawdown | -34.3% | -3.5% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Sep 7, 2010 | May 6, 2025 |
VOO vs VTEL Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and Vanguard Long-Term Tax-Exempt Bond ETF (VTEL) is a ETF from Vanguard (US). Over the past year VOO returned +22.62% while VTEL returned +4.89%. Year to date, VOO is up 13.44% versus a loss of 1.08% for VTEL.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 5.4% for VTEL. 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 -34.3% for VOO and -3.5% for VTEL. 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOO charges 0.03% per year while VTEL charges 0.09%. On a $10,000 position that is $3 vs $9 annually, a gap of $6 per year that compounds over a long holding period. On income, VOO currently yields 1.09% against 3.78% for VTEL.
Holdings Overlap
VOO and VTEL share 0 holdings out of 1922 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, VOO or VTEL?
VOO has an expense ratio of 0.03% while VTEL charges 0.09%. VOO is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VOO or VTEL?
Over the past year VOO returned +22.62% vs +4.89% for VTEL, so VOO leads on 1-year performance. Over the longest common window we track (1 years), VOO annualized +13.55% vs +4.55% for VTEL. Past performance does not guarantee future results.
Which is riskier, VOO or VTEL?
VOO has been the more volatile fund at 14.1% annualized versus 5.4% for VTEL. Worst drawdown: VOO -34.3% vs VTEL -3.5%.
Should I hold both VOO and VTEL?
VOO and VTEL have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and VTEL?
VOO and VTEL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1922 unique securities.
Which pays a higher dividend, VOO or VTEL?
VOO yields 1.09% while VTEL yields 3.78%, so VTEL currently pays the higher dividend yield.
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