HYDW vs VOO
HYDW vs VOO
Xtrackers Low Beta High Yield Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. HYDW offers more diversification with 516 holdings.
Side-by-Side Comparison
| Metric | HYDW | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.03% | |
| AUM | $67M | $979.0B | |
| Dividend Yield | 5.73% | 1.09% | |
| Holdings | 586 | 509 | |
| YTD Return | +1.40% | +13.53% | |
| 1Y Return | +4.35% | +23.65% | |
| 3Y Return (annualized) | +6.97% | +21.27% | |
| 5Y Return (annualized) | +3.45% | +13.52% | |
| Volatility (annualized) | 6.6% | 14.1% | |
| Max Drawdown | -18.1% | -34.3% | |
| Fund Family | Xtrackers ETFs | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 11, 2018 | Sep 7, 2010 |
HYDW vs VOO Performance
Xtrackers Low Beta High Yield Bond ETF (HYDW) is a ETF from Xtrackers ETFs and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year HYDW returned +4.35% while VOO returned +23.65%. Year to date, HYDW is up 1.40% versus a gain of 13.53% for VOO.
Over three years, HYDW compounded at +6.97% per year against +21.27% for VOO; over five years the annualized figures are +3.45% and +13.52% respectively. Across the full 9-year window we track, VOO has the edge at +13.57% annualized vs +2.37%. 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 6.6% for HYDW. 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 -18.1% for HYDW 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYDW charges 0.20% per year while VOO charges 0.03%. On a $10,000 position that is $20 vs $3 annually, a gap of $17 per year that compounds over a long holding period. On income, HYDW currently yields 5.73% against 1.09% for VOO.
Holdings Overlap
HYDW and VOO share 0 holdings out of 1021 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, HYDW or VOO?
HYDW has an expense ratio of 0.20% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, HYDW or VOO?
Over the past year HYDW returned +4.35% vs +23.65% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (9 years), HYDW annualized +2.37% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, HYDW or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 6.6% for HYDW. Worst drawdown: HYDW -18.1% vs VOO -34.3%.
Should I hold both HYDW and VOO?
HYDW and VOO have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYDW and VOO?
HYDW and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1021 unique securities.
Which pays a higher dividend, HYDW or VOO?
HYDW yields 5.73% while VOO yields 1.09%, so HYDW currently pays the higher dividend yield.
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