VOO vs ZHDG
Vanguard S&P 500 ETF vs ZEGA Buy and Hedge 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 | ZHDG | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.97% | |
| AUM | $997.4B | $37M | |
| Dividend Yield | 1.08% | 2.47% | |
| Holdings | 509 | 11 | |
| YTD Return | +12.25% | +6.56% | |
| 1Y Return | +20.92% | +12.64% | |
| 3Y Return (annualized) | +21.79% | +13.88% | |
| 5Y Return (annualized) | +13.05% | +5.81% | |
| Volatility (annualized) | 14.1% | 12.5% | |
| Max Drawdown | -34.3% | -23.3% | |
| Fund Family | Vanguard (US) | Zega ETFs | |
| Category | Equity | Equity | |
| Inception | Sep 7, 2010 | Jul 6, 2021 |
VOO vs ZHDG Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and ZEGA Buy and Hedge ETF (ZHDG) is a ETF from Zega ETFs. Over the past year VOO returned +20.92% while ZHDG returned +12.64%. Year to date, VOO is up 12.25% versus a gain of 6.56% for ZHDG.
Over three years, VOO compounded at +21.79% per year against +13.88% for ZHDG; over five years the annualized figures are +13.05% and +5.81% respectively. Across the full 5-year window we track, VOO has the edge at +13.45% annualized vs +5.88%. 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 12.5% for ZHDG. 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 -23.3% for ZHDG. 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 0.98. 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 ZHDG charges 0.97%. On a $10,000 position that is $3 vs $97 annually, a gap of $94 per year that compounds over a long holding period. On income, VOO currently yields 1.08% against 2.47% for ZHDG.
Holdings Overlap
VOO and ZHDG share 0 holdings out of 508 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 ZHDG?
VOO has an expense ratio of 0.03% while ZHDG charges 0.97%. VOO is the cheaper option. On a $10,000 investment, that is $94 per year of difference.
Which performed better, VOO or ZHDG?
Over the past year VOO returned +20.92% vs +12.64% for ZHDG, so VOO leads on 1-year performance. Over the longest common window we track (5 years), VOO annualized +13.45% vs +5.88% for ZHDG. Past performance does not guarantee future results.
Which is riskier, VOO or ZHDG?
VOO has been the more volatile fund at 14.1% annualized versus 12.5% for ZHDG. Worst drawdown: VOO -34.3% vs ZHDG -23.3%.
Should I hold both VOO and ZHDG?
VOO and ZHDG have a monthly-return correlation of 0.98, 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 ZHDG?
VOO and ZHDG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 508 unique securities.
Which pays a higher dividend, VOO or ZHDG?
VOO yields 1.08% while ZHDG yields 2.47%, so ZHDG currently pays the higher dividend yield.
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