VOO vs VTWAX
Vanguard S&P 500 ETF vs Vanguard Total World Stock Index Fund Admiral Class
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VTWAX offers more diversification with 10,039 holdings.
Side-by-Side Comparison
| Metric | VOO | VTWAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.09% | |
| AUM | $997.4B | $12.1B | |
| Dividend Yield | 1.08% | 1.56% | |
| Holdings | 509 | 10,039 | |
| YTD Return | +14.27% | +14.18% | |
| 1Y Return | +21.79% | +21.58% | |
| 3Y Return (annualized) | +22.19% | +18.96% | |
| 5Y Return (annualized) | +13.28% | +8.98% | |
| Volatility (annualized) | 14.2% | 15.3% | |
| Max Drawdown | -34.3% | -28.0% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | Feb 7, 2019 |
VOO vs VTWAX Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and Vanguard Total World Stock Index Fund Admiral Class (VTWAX) is a mutual fund from Vanguard (US). Over the past year VOO returned +21.79% while VTWAX returned +21.58%. Year to date, VOO is up 14.27% versus a gain of 14.18% for VTWAX.
Over three years, VOO compounded at +22.19% per year against +18.96% for VTWAX; over five years the annualized figures are +13.28% and +8.98% respectively. Across the full 5-year window we track, VOO has the edge at +13.59% annualized vs +8.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTWAX has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.2% 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 -34.3% for VOO and -28.0% for VTWAX. 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VOO charges 0.03% per year while VTWAX 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 1.08% against 1.56% for VTWAX.
Holdings Overlap
VOO and VTWAX share 493 holdings out of 9804 unique holdings combined, representing a 52.7% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, VOO or VTWAX?
VOO has an expense ratio of 0.03% while VTWAX 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 VTWAX?
Over the past year VOO returned +21.79% vs +21.58% for VTWAX, so VOO leads on 1-year performance. Over the longest common window we track (5 years), VOO annualized +13.59% vs +8.98% for VTWAX. Past performance does not guarantee future results.
Which is riskier, VOO or VTWAX?
VTWAX has been the more volatile fund at 15.3% annualized versus 14.2% for VOO. Worst drawdown: VOO -34.3% vs VTWAX -28.0%.
Should I hold both VOO and VTWAX?
VOO and VTWAX have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VOO and VTWAX?
VOO and VTWAX share 493 common holdings with a 52.7% weight overlap. Combined, they hold 9804 unique securities.
Which pays a higher dividend, VOO or VTWAX?
VOO yields 1.08% while VTWAX yields 1.56%, so VTWAX currently pays the higher dividend yield.
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