HIO vs VOO
HIO vs VOO
Western Asset High Income Opportunity Fund Inc. vs Vanguard S&P 500 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 | HIO | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.94% | 0.03% | |
| AUM | $365M | $979.0B | |
| Dividend Yield | 10.92% | 1.09% | |
| Holdings | 338 | 509 | |
| YTD Return | +3.54% | +13.80% | |
| 1Y Return | +0.53% | +23.71% | |
| 3Y Return (annualized) | +9.34% | +21.50% | |
| 5Y Return (annualized) | +2.32% | +13.44% | |
| Volatility (annualized) | 13.4% | 14.1% | |
| Max Drawdown | -76.3% | -34.3% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 22, 1993 | Sep 7, 2010 |
HIO vs VOO Performance
Western Asset High Income Opportunity Fund Inc. (HIO) 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 HIO returned +0.53% while VOO returned +23.71%. Year to date, HIO is up 3.54% versus a gain of 13.80% for VOO.
Over three years, HIO compounded at +9.34% per year against +21.50% for VOO; over five years the annualized figures are +2.32% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs -2.02%. 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 13.4% for HIO. 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 -76.3% for HIO 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HIO charges 0.94% per year while VOO charges 0.03%. On a $10,000 position that is $94 vs $3 annually, a gap of $91 per year that compounds over a long holding period. On income, HIO currently yields 10.92% against 1.09% for VOO.
Holdings Overlap
HIO 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, HIO or VOO?
HIO has an expense ratio of 0.94% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $91 per year of difference.
Which performed better, HIO or VOO?
Over the past year HIO returned +0.53% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), HIO annualized -2.02% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, HIO or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 13.4% for HIO. Worst drawdown: HIO -76.3% vs VOO -34.3%.
Should I hold both HIO and VOO?
HIO and VOO have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HIO and VOO?
HIO and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 718 unique securities.
Which pays a higher dividend, HIO or VOO?
HIO yields 10.92% while VOO yields 1.09%, so HIO 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.