HYI vs VOO
HYI vs VOO
Western Asset High Yield Defined 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 | HYI | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.03% | |
| AUM | $146M | $979.0B | |
| Dividend Yield | 9.89% | 1.09% | |
| Holdings | 258 | 509 | |
| YTD Return | +0.25% | +13.11% | |
| 1Y Return | -2.25% | +22.88% | |
| 3Y Return (annualized) | +6.05% | +21.08% | |
| 5Y Return (annualized) | +1.32% | +13.26% | |
| Volatility (annualized) | 12.4% | 14.1% | |
| Max Drawdown | -48.5% | -34.3% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 27, 2010 | Sep 7, 2010 |
HYI vs VOO Performance
Western Asset High Yield Defined Opportunity Fund Inc. (HYI) 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 HYI returned -2.25% while VOO returned +22.88%. Year to date, HYI is up 0.25% versus a gain of 13.11% for VOO.
Over three years, HYI compounded at +6.05% per year against +21.08% for VOO; over five years the annualized figures are +1.32% and +13.26% respectively. Across the full 16-year window we track, VOO has the edge at +13.54% annualized vs -0.86%. 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 12.4% for HYI. 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 -48.5% for HYI 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYI charges 0.96% per year while VOO charges 0.03%. On a $10,000 position that is $96 vs $3 annually, a gap of $93 per year that compounds over a long holding period. On income, HYI currently yields 9.89% against 1.09% for VOO.
Holdings Overlap
HYI and VOO share 0 holdings out of 696 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, HYI or VOO?
HYI has an expense ratio of 0.96% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, HYI or VOO?
Over the past year HYI returned -2.25% vs +22.88% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), HYI annualized -0.86% vs +13.54% for VOO. Past performance does not guarantee future results.
Which is riskier, HYI or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 12.4% for HYI. Worst drawdown: HYI -48.5% vs VOO -34.3%.
Should I hold both HYI and VOO?
HYI and VOO have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYI and VOO?
HYI and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 696 unique securities.
Which pays a higher dividend, HYI or VOO?
HYI yields 9.89% while VOO yields 1.09%, so HYI 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.