VOO vs WBND
Vanguard S&P 500 ETF vs Western Asset Total Return ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. WBND offers more diversification with 512 holdings.
Side-by-Side Comparison
| Metric | VOO | WBND | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.65% | |
| AUM | $979.0B | $10M | |
| Dividend Yield | 1.09% | 4.06% | |
| Holdings | 509 | 512 | |
| YTD Return | +14.48% | +4.40% | |
| 1Y Return | +22.02% | +1.11% | |
| 3Y Return (annualized) | +21.80% | +1.75% | |
| 5Y Return (annualized) | +13.36% | -2.98% | |
| Volatility (annualized) | 14.2% | 142.2% | |
| Max Drawdown | -34.3% | -81.5% | |
| Fund Family | Vanguard (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Sep 7, 2010 | Oct 3, 2018 |
VOO vs WBND Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and Western Asset Total Return ETF (WBND) is a ETF from Franklin Templeton Investments (US). Over the past year VOO returned +22.02% while WBND returned +1.11%. Year to date, VOO is up 14.48% versus a gain of 4.40% for WBND.
Over three years, VOO compounded at +21.80% per year against +1.75% for WBND; over five years the annualized figures are +13.36% and -2.98% respectively. Across the full 7-year window we track, VOO has the edge at +13.61% annualized vs +0.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WBND has been the more volatile fund, with annualized monthly volatility of 142.2% 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 -81.5% for WBND. 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 0.02. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOO charges 0.03% per year while WBND charges 0.65%. On a $10,000 position that is $3 vs $65 annually, a gap of $62 per year that compounds over a long holding period. On income, VOO currently yields 1.09% against 4.06% for WBND.
Frequently Asked Questions
Which is cheaper, VOO or WBND?
VOO has an expense ratio of 0.03% while WBND charges 0.65%. VOO is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, VOO or WBND?
Over the past year VOO returned +22.02% vs +1.11% for WBND, so VOO leads on 1-year performance. Over the longest common window we track (7 years), VOO annualized +13.61% vs +0.85% for WBND. Past performance does not guarantee future results.
Which is riskier, VOO or WBND?
WBND has been the more volatile fund at 142.2% annualized versus 14.2% for VOO. Worst drawdown: VOO -34.3% vs WBND -81.5%.
Should I hold both VOO and WBND?
VOO and WBND have a monthly-return correlation of 0.02, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, VOO or WBND?
VOO yields 1.09% while WBND yields 4.06%, so WBND currently pays the higher dividend yield.
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