CMBS vs VOO

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

MetricCMBSVOOWinner
Expense Ratio0.25%0.03%
AUM$473M$979.0B
Dividend Yield3.57%1.09%
Holdings467509
YTD Return+0.12%+9.95%
1Y Return+3.27%+19.58%
3Y Return (annualized)+5.47%+19.43%
5Y Return (annualized)+0.60%+12.89%
Volatility (annualized)3.9%14.2%
Max Drawdown-16.4%-34.3%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionFeb 14, 2012Sep 7, 2010

CMBS vs VOO Performance

iShares CMBS ETF (CMBS) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year CMBS returned +3.27% while VOO returned +19.58%. Year to date, CMBS is up 0.12% versus a gain of 9.95% for VOO.

Over three years, CMBS compounded at +5.47% per year against +19.43% for VOO; over five years the annualized figures are +0.60% and +12.89% respectively. Across the full 15-year window we track, VOO has the edge at +13.35% annualized vs +0.83%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 3.9% for CMBS. 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 -16.4% for CMBS and -34.3% for VOO. 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

CMBS charges 0.25% per year while VOO charges 0.03%. On a $10,000 position that is $25 vs $3 annually, a gap of $22 per year that compounds over a long holding period. On income, CMBS currently yields 3.57% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

CMBS and VOO share 0 holdings out of 949 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, CMBS or VOO?

CMBS has an expense ratio of 0.25% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $22 per year of difference.

Which performed better, CMBS or VOO?

Over the past year CMBS returned +3.27% vs +19.58% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (15 years), CMBS annualized +0.83% vs +13.35% for VOO. Past performance does not guarantee future results.

Which is riskier, CMBS or VOO?

VOO has been the more volatile fund at 14.2% annualized versus 3.9% for CMBS. Worst drawdown: CMBS -16.4% vs VOO -34.3%.

Should I hold both CMBS and VOO?

CMBS and VOO have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between CMBS and VOO?

CMBS and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 949 unique securities.

Which pays a higher dividend, CMBS or VOO?

CMBS yields 3.57% while VOO yields 1.09%, so CMBS currently pays the higher dividend yield.

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