VOO vs WEBS

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricVOOWEBSWinner
Expense Ratio0.03%1.07%
AUM$979.0B$8M
Dividend Yield1.09%2.83%
Holdings5096
YTD Return+13.79%-32.74%
1Y Return+23.01%-31.08%
3Y Return (annualized)+21.78%-50.70%
5Y Return (annualized)+13.39%-36.63%
Volatility (annualized)14.1%65.6%
Max Drawdown-34.3%-99.7%
Fund FamilyVanguard (US)Direxion Shares ETF Trust
CategoryEquityAlternative
InceptionSep 7, 2010Nov 7, 2019

VOO vs WEBS Performance

Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and Direxion Daily Dow Jones Internet Bear 3X ETF (WEBS) is a ETF from Direxion Shares ETF Trust. Over the past year VOO returned +23.01% while WEBS returned -31.08%. Year to date, VOO is up 13.79% versus a loss of 32.74% for WEBS.

Over three years, VOO compounded at +21.78% per year against -50.70% for WEBS; over five years the annualized figures are +13.39% and -36.63% respectively. Across the full 7-year window we track, VOO has the edge at +13.57% annualized vs -52.67%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

WEBS has been the more volatile fund, with annualized monthly volatility of 65.6% 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 -99.7% for WEBS. 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 -0.76. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VOO charges 0.03% per year while WEBS charges 1.07%. On a $10,000 position that is $3 vs $107 annually, a gap of $104 per year that compounds over a long holding period. On income, VOO currently yields 1.09% against 2.83% for WEBS.

Holdings Overlap

0.0%overlap

VOO and WEBS share 0 holdings out of 507 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 WEBS?

VOO has an expense ratio of 0.03% while WEBS charges 1.07%. VOO is the cheaper option. On a $10,000 investment, that is $104 per year of difference.

Which performed better, VOO or WEBS?

Over the past year VOO returned +23.01% vs -31.08% for WEBS, so VOO leads on 1-year performance. Over the longest common window we track (7 years), VOO annualized +13.57% vs -52.67% for WEBS. Past performance does not guarantee future results.

Which is riskier, VOO or WEBS?

WEBS has been the more volatile fund at 65.6% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs WEBS -99.7%.

Should I hold both VOO and WEBS?

VOO and WEBS have a monthly-return correlation of -0.76, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VOO and WEBS?

VOO and WEBS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.

Which pays a higher dividend, VOO or WEBS?

VOO yields 1.09% while WEBS yields 2.83%, so WEBS currently pays the higher dividend yield.

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