VOO vs WABF

VOO vs WABF

Which is better, VOO or WABF?

Large Cap Blend against High Yield Bond.

VOO has a lower expense ratio. VOO led over 1Y, 3Y 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

MetricVOOWABF
Expense Ratio0.03%Best0.35%
AUM$997.4B$16M
Dividend Yield1.04%5.27%
Holdings509449
YTD Return+11.48%Best-1.61%
1Y Return+15.94%Best-1.11%
3Y Return (annualized)+21.01%Best+4.72%
5Y Return (annualized)+12.66%-
Volatility (annualized)12.5%6.5%Best
Max Drawdown-18.7%-5.4%Best
$10,000 over 3 years$18,252Best$11,484
Fund FamilyVanguard (US)Franklin Templeton Investments (US)
CategoryEquityFixed Income
StyleLarge Cap BlendHigh Yield Bond
InceptionSep 7, 2010Sep 19, 2023

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Sep 21, 2023 to Sep 15, 2026 (3 years).

VOO vs WABF 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 3 years both funds cover.

VOO vs WABF Performance

Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US) and Western Asset Bond ETF (WABF) is an ETF from Franklin Templeton Investments (US). Over the past year VOO returned +15.94% while WABF returned -1.11%. Year to date, VOO is up 11.48% versus a loss of 1.61% for WABF.

Over three years, VOO compounded at +21.01% per year against +4.72% for WABF.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 12.5% compared with 6.5% for WABF. 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 -18.7% for VOO and -5.4% for WABF. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.55. They move together some of the time, and apart the rest.

Fees and Cost Over Time

VOO charges 0.03% per year while WABF charges 0.35%. On a $10,000 position that is $3 vs $35 annually, a gap of $32 per year that compounds over a long holding period. On income, VOO currently yields 1.04% against 5.27% for WABF.

You are not choosing between two funds in isolation.

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

VOOWABF

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Frequently Asked Questions

Which is cheaper, VOO or WABF?

VOO has an expense ratio of 0.03% while WABF charges 0.35%. VOO is the cheaper option, by $32 a year on a $10,000 investment.

Which performed better, VOO or WABF?

Over the past year VOO returned +15.94% vs -1.11% for WABF, so VOO leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, VOO or WABF?

VOO has been the more volatile fund at 12.5% annualized versus 6.5% for WABF. Worst drawdown: VOO -18.7% vs WABF -5.4%.

Should I hold both VOO and WABF?

VOO and WABF have a monthly-return correlation of 0.55, 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 WABF?

VOO yields 1.04% while WABF yields 5.27%, so WABF currently pays the higher dividend yield.

Is WABF better than VOO?

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