VOO vs XDEC

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

MetricVOOXDECWinner
Expense Ratio0.03%0.85%
AUM$979.0B$202M
Dividend Yield1.09%0.00%
Holdings5096
YTD Return+13.44%+6.15%
1Y Return+22.62%+10.30%
3Y Return (annualized)+21.47%+9.77%
5Y Return (annualized)+13.27%-
Volatility (annualized)14.1%6.9%
Max Drawdown-34.3%-11.8%
Fund FamilyVanguard (US)First Trust Portfolios (US)
CategoryEquityAlternative
InceptionSep 7, 2010Dec 17, 2021

VOO vs XDEC Performance

Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and FT Vest US Equity Enhance & Moderate Buffer ETF - December (XDEC) is a ETF from First Trust Portfolios (US). Over the past year VOO returned +22.62% while XDEC returned +10.30%. Year to date, VOO is up 13.44% versus a gain of 6.15% for XDEC.

Over three years, VOO compounded at +21.47% per year against +9.77% for XDEC. Across the full 5-year window we track, VOO has the edge at +13.55% annualized vs +8.14%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 6.9% for XDEC. 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 -11.8% for XDEC. 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

VOO charges 0.03% per year while XDEC charges 0.85%. On a $10,000 position that is $3 vs $85 annually, a gap of $82 per year that compounds over a long holding period. On income, VOO currently yields 1.09% against 0.00% for XDEC.

Holdings Overlap

0.0%overlap

VOO and XDEC share 0 holdings out of 506 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 XDEC?

VOO has an expense ratio of 0.03% while XDEC charges 0.85%. VOO is the cheaper option. On a $10,000 investment, that is $82 per year of difference.

Which performed better, VOO or XDEC?

Over the past year VOO returned +22.62% vs +10.30% for XDEC, so VOO leads on 1-year performance. Over the longest common window we track (5 years), VOO annualized +13.55% vs +8.14% for XDEC. Past performance does not guarantee future results.

Which is riskier, VOO or XDEC?

VOO has been the more volatile fund at 14.1% annualized versus 6.9% for XDEC. Worst drawdown: VOO -34.3% vs XDEC -11.8%.

Should I hold both VOO and XDEC?

VOO and XDEC have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between VOO and XDEC?

VOO and XDEC share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.

Which pays a higher dividend, VOO or XDEC?

VOO yields 1.09% while XDEC yields 0.00%, so VOO currently pays the higher dividend yield.

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