GDO 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

MetricGDOVOOWinner
Expense Ratio1.20%0.03%
AUM$84M$979.0B
Dividend Yield12.86%1.09%
Holdings330509
YTD Return-5.61%+13.53%
1Y Return+0.48%+23.65%
3Y Return (annualized)+6.08%+21.27%
5Y Return (annualized)-1.11%+13.52%
Volatility (annualized)12.7%14.1%
Max Drawdown-41.8%-34.3%
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionNov 24, 2009Sep 7, 2010

GDO vs VOO Performance

Western Asset Global Corporate Defined Opportunity Fund Inc. (GDO) is a ETF from Franklin Templeton Investments (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year GDO returned +0.48% while VOO returned +23.65%. Year to date, GDO is down 5.61% versus a gain of 13.53% for VOO.

Over three years, GDO compounded at +6.08% per year against +21.27% for VOO; over five years the annualized figures are -1.11% and +13.52% respectively. Across the full 16-year window we track, VOO has the edge at +13.57% annualized vs -0.59%. 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 12.7% for GDO. 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 -41.8% for GDO 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

GDO charges 1.20% per year while VOO charges 0.03%. On a $10,000 position that is $120 vs $3 annually, a gap of $117 per year that compounds over a long holding period. On income, GDO currently yields 12.86% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

GDO and VOO share 0 holdings out of 718 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, GDO or VOO?

GDO has an expense ratio of 1.20% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $117 per year of difference.

Which performed better, GDO or VOO?

Over the past year GDO returned +0.48% vs +23.65% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), GDO annualized -0.59% vs +13.57% for VOO. Past performance does not guarantee future results.

Which is riskier, GDO or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 12.7% for GDO. Worst drawdown: GDO -41.8% vs VOO -34.3%.

Should I hold both GDO and VOO?

GDO and VOO have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between GDO and VOO?

GDO and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 718 unique securities.

Which pays a higher dividend, GDO or VOO?

GDO yields 12.86% while VOO yields 1.09%, so GDO currently pays the higher dividend yield.

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