HEFA vs VOO
HEFA vs VOO
iShares Currency Hedged MSCI EAFE ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. HEFA delivered stronger 1-year returns. HEFA offers more diversification with 648 holdings.
Side-by-Side Comparison
| Metric | HEFA | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.03% | |
| AUM | $7.5B | $979.0B | |
| Dividend Yield | 2.95% | 1.09% | |
| Holdings | 786 | 509 | |
| YTD Return | +11.38% | +11.51% | |
| 1Y Return | +23.73% | +21.46% | |
| 3Y Return (annualized) | +18.08% | +20.86% | |
| 5Y Return (annualized) | +11.24% | +13.01% | |
| Volatility (annualized) | 12.3% | 14.1% | |
| Max Drawdown | -45.6% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 31, 2014 | Sep 7, 2010 |
HEFA vs VOO Performance
iShares Currency Hedged MSCI EAFE ETF (HEFA) 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 HEFA returned +23.73% while VOO returned +21.46%. Year to date, HEFA is up 11.38% versus a gain of 11.51% for VOO.
Over three years, HEFA compounded at +18.08% per year against +20.86% for VOO; over five years the annualized figures are +11.24% and +13.01% respectively. Across the full 13-year window we track, VOO has the edge at +13.44% annualized vs +9.62%. 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 12.3% for HEFA. 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 -45.6% for HEFA 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HEFA charges 0.35% per year while VOO charges 0.03%. On a $10,000 position that is $35 vs $3 annually, a gap of $32 per year that compounds over a long holding period. On income, HEFA currently yields 2.95% against 1.09% for VOO.
Holdings Overlap
HEFA and VOO share 1 holdings out of 1152 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in HEFA | Weight in VOO | Difference |
|---|---|---|---|
| MRK | 0.09% | 0.49% | 0.40% |
Frequently Asked Questions
Which is cheaper, HEFA or VOO?
HEFA has an expense ratio of 0.35% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, HEFA or VOO?
Over the past year HEFA returned +23.73% vs +21.46% for VOO, so HEFA leads on 1-year performance. Over the longest common window we track (13 years), HEFA annualized +9.62% vs +13.44% for VOO. Past performance does not guarantee future results.
Which is riskier, HEFA or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 12.3% for HEFA. Worst drawdown: HEFA -45.6% vs VOO -34.3%.
Should I hold both HEFA and VOO?
HEFA and VOO have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEFA and VOO?
HEFA and VOO share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1152 unique securities.
Which pays a higher dividend, HEFA or VOO?
HEFA yields 2.95% while VOO yields 1.09%, so HEFA currently pays the higher dividend yield.
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