VOO vs VTWO
Vanguard S&P 500 ETF vs Vanguard Russell 2000 ETF
Which is better, VOO or VTWO?
Large Cap Blend against Small Cap Blend.
VOO has a lower expense ratio. VOO led over 3Y, 5Y and the full window, VTWO over 1Y.
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
| Metric | VOO | VTWO |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.06% |
| AUM | $997.4B | $17.5B |
| Dividend Yield | 1.04% | 1.10% |
| Holdings | 509 | 2,015 |
| YTD Return | +14.14% | +16.37%Best |
| 1Y Return | +17.31% | +18.90%Best |
| 3Y Return (annualized) | +23.04%Best | +19.14% |
| 5Y Return (annualized) | +13.63%Best | +6.93% |
| Volatility (annualized) | 14.1%Best | 19.1% |
| Max Drawdown | -34.3%Best | -42.4% |
| $10,000 over 5 years | $18,944Best | $13,980 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Small Cap Blend |
| Inception | Sep 7, 2010 | Sep 20, 2010 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2010 to Sep 22, 2026 (16 years).
VOO vs VTWO 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 covers the 16 years both funds cover.
VOO vs VTWO Performance
Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US) and Vanguard Russell 2000 ETF (VTWO) is an ETF from Vanguard (US). Over the past year VOO returned +17.31% while VTWO returned +18.90%. Year to date, VOO is up 14.14% versus a gain of 16.37% for VTWO.
Over three years, VOO compounded at +23.04% per year against +19.14% for VTWO; over five years the annualized figures are +13.63% and +6.93% respectively. Across the full 16-year window we track, VOO has the edge at +13.32% annualized vs +10.37%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTWO has been the more volatile fund, with annualized monthly volatility of 19.1% 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 -34.3% for VOO and -42.4% for VTWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VOO charges 0.03% per year while VTWO charges 0.06%. On a $10,000 position that is $3 vs $6 annually, a gap of $3 per year that compounds over a long holding period. On income, VOO currently yields 1.04% against 1.10% for VTWO.
Holdings Overlap
At least 0.1% of VOO's money is in holdings VTWO also owns.
Stated as a floor: for VTWO, our book for it covers 89.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 494 positions we hold weights for in VOO and 1,633 in VTWO, against full books of 509 and 2,015.
Top Shared Holdings
| Stock | Weight in VOO | Weight in VTWO | Difference |
|---|---|---|---|
| CURVVanguard Market Liquidity Fund | 0.05% | 0.00% | 0.05% |
You are not choosing between two funds in isolation.
Whichever of VOO and VTWO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VOO or VTWO?
VOO has an expense ratio of 0.03% while VTWO charges 0.06%. VOO is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VOO or VTWO?
Over the past year VOO returned +17.31% vs +18.90% for VTWO, so VTWO leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.32% vs +10.37% for VTWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VOO or VTWO?
VTWO has been the more volatile fund at 19.1% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs VTWO -42.4%.
Should I hold both VOO and VTWO?
VOO and VTWO have a monthly-return correlation of 0.86, 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, VOO or VTWO?
VOO yields 1.04% while VTWO yields 1.10%, so VTWO currently pays the higher dividend yield.
Is VTWO better than VOO?
VOO has a lower expense ratio. VOO led over 3Y, 5Y and the full window, VTWO over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.