VOO vs WDEF
Vanguard S&P 500 ETF vs WisdomTree Europe Defense Fund ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | VOO | WDEF | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.45% | |
| AUM | $997.4B | $106M | |
| Dividend Yield | 1.08% | 0.07% | |
| Holdings | 509 | 47 | |
| YTD Return | +12.95% | +9.50% | |
| 1Y Return | +20.69% | +10.78% | |
| 3Y Return (annualized) | +22.09% | - | |
| 5Y Return (annualized) | +13.40% | - | |
| Volatility (annualized) | 14.1% | 32.9% | |
| Max Drawdown | -34.3% | -23.9% | |
| Fund Family | Vanguard (US) | WisdomTree Investments | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | Jul 17, 2025 |
VOO vs WDEF Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and WisdomTree Europe Defense Fund ETF (WDEF) is a ETF from WisdomTree Investments. Over the past year VOO returned +20.69% while WDEF returned +10.78%. Year to date, VOO is up 12.95% versus a gain of 9.50% for WDEF.
Risk: Volatility and Drawdowns
WDEF has been the more volatile fund, with annualized monthly volatility of 32.9% 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 -23.9% for WDEF. 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOO charges 0.03% per year while WDEF charges 0.45%. On a $10,000 position that is $3 vs $45 annually, a gap of $42 per year that compounds over a long holding period. On income, VOO currently yields 1.08% against 0.07% for WDEF.
Holdings Overlap
VOO and WDEF share 0 holdings out of 546 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 WDEF?
VOO has an expense ratio of 0.03% while WDEF charges 0.45%. VOO is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, VOO or WDEF?
Over the past year VOO returned +20.69% vs +10.78% for WDEF, so VOO leads on 1-year performance. Over the longest common window we track (1 years), VOO annualized +13.50% vs +8.00% for WDEF. Past performance does not guarantee future results.
Which is riskier, VOO or WDEF?
WDEF has been the more volatile fund at 32.9% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs WDEF -23.9%.
Should I hold both VOO and WDEF?
VOO and WDEF have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and WDEF?
VOO and WDEF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 546 unique securities.
Which pays a higher dividend, VOO or WDEF?
VOO yields 1.08% while WDEF yields 0.07%, so VOO currently pays the higher dividend yield.
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