VOO vs ZTWO
Vanguard S&P 500 ETF vs F/m 2-Year Investment Grade Corporate Bond ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | VOO | ZTWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.15% | |
| AUM | $979.0B | $18M | |
| Dividend Yield | 1.09% | 4.45% | |
| Holdings | 509 | 427 | |
| YTD Return | +13.44% | +1.43% | |
| 1Y Return | +22.62% | +3.46% | |
| 3Y Return (annualized) | +21.47% | - | |
| 5Y Return (annualized) | +13.27% | - | |
| Volatility (annualized) | 14.1% | 1.4% | |
| Max Drawdown | -34.3% | -0.9% | |
| Fund Family | Vanguard (US) | F-m investments | |
| Category | Equity | Fixed Income | |
| Inception | Sep 7, 2010 | Jan 10, 2024 |
VOO vs ZTWO Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and F/m 2-Year Investment Grade Corporate Bond ETF (ZTWO) is a ETF from F-m investments. Over the past year VOO returned +22.62% while ZTWO returned +3.46%. Year to date, VOO is up 13.44% versus a gain of 1.43% for ZTWO.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 1.4% for ZTWO. 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 -0.9% for ZTWO. 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOO charges 0.03% per year while ZTWO charges 0.15%. On a $10,000 position that is $3 vs $15 annually, a gap of $12 per year that compounds over a long holding period. On income, VOO currently yields 1.09% against 4.45% for ZTWO.
Holdings Overlap
VOO and ZTWO share 1 holdings out of 906 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VOO | Weight in ZTWO | Difference |
|---|---|---|---|
| HUBB | 0.04% | 0.23% | 0.19% |
Frequently Asked Questions
Which is cheaper, VOO or ZTWO?
VOO has an expense ratio of 0.03% while ZTWO charges 0.15%. VOO is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, VOO or ZTWO?
Over the past year VOO returned +22.62% vs +3.46% for ZTWO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), VOO annualized +13.55% vs +4.62% for ZTWO. Past performance does not guarantee future results.
Which is riskier, VOO or ZTWO?
VOO has been the more volatile fund at 14.1% annualized versus 1.4% for ZTWO. Worst drawdown: VOO -34.3% vs ZTWO -0.9%.
Should I hold both VOO and ZTWO?
VOO and ZTWO have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and ZTWO?
VOO and ZTWO share 1 common holdings with a 0.0% weight overlap. Combined, they hold 906 unique securities.
Which pays a higher dividend, VOO or ZTWO?
VOO yields 1.09% while ZTWO yields 4.45%, so ZTWO currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.