VOO vs WFH

Quick Verdict

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

Lower Fees: VOOHigher Returns: WFHMore Diversified: VOO

Side-by-Side Comparison

MetricVOOWFHWinner
Expense Ratio0.03%0.45%
AUM$979.0B$13M
Dividend Yield1.09%1.05%
Holdings50941
YTD Return+13.72%+15.01%
1Y Return+21.63%+24.89%
3Y Return (annualized)+21.55%+20.91%
5Y Return (annualized)+13.26%+5.89%
Volatility (annualized)14.1%21.9%
Max Drawdown-34.3%-51.2%
Fund FamilyVanguard (US)Direxion Funds
CategoryEquityEquity
InceptionSep 7, 2010Jun 25, 2020

VOO vs WFH Performance

Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and Direxion Work From Home ETF (WFH) is a ETF from Direxion Funds. Over the past year VOO returned +21.63% while WFH returned +24.89%. Year to date, VOO is up 13.72% versus a gain of 15.01% for WFH.

Over three years, VOO compounded at +21.55% per year against +20.91% for WFH; over five years the annualized figures are +13.26% and +5.89% respectively. Across the full 5-year window we track, VOO has the edge at +13.56% annualized vs +8.01%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

WFH has been the more volatile fund, with annualized monthly volatility of 21.9% 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 -51.2% for WFH. 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 usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VOO charges 0.03% per year while WFH 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 1.09% against 1.05% for WFH.

Frequently Asked Questions

Which is cheaper, VOO or WFH?

VOO has an expense ratio of 0.03% while WFH 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 WFH?

Over the past year VOO returned +21.63% vs +24.89% for WFH, so WFH leads on 1-year performance. Over the longest common window we track (5 years), VOO annualized +13.56% vs +8.01% for WFH. Past performance does not guarantee future results.

Which is riskier, VOO or WFH?

WFH has been the more volatile fund at 21.9% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs WFH -51.2%.

Should I hold both VOO and WFH?

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

Which pays a higher dividend, VOO or WFH?

VOO yields 1.09% while WFH yields 1.05%, so VOO currently pays the higher dividend yield.

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