LMBS vs VOO
LMBS vs VOO
First Trust Low Duration Opportunities ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. LMBS offers more diversification with 764 holdings.
Side-by-Side Comparison
| Metric | LMBS | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.03% | |
| AUM | $6.4B | $979.0B | |
| Dividend Yield | 4.10% | 1.09% | |
| Holdings | 1,213 | 509 | |
| YTD Return | +1.65% | +13.53% | |
| 1Y Return | +4.17% | +23.65% | |
| 3Y Return (annualized) | +5.64% | +21.27% | |
| 5Y Return (annualized) | +3.04% | +13.52% | |
| Volatility (annualized) | 2.2% | 14.1% | |
| Max Drawdown | -8.5% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 4, 2014 | Sep 7, 2010 |
LMBS vs VOO Performance
First Trust Low Duration Opportunities ETF (LMBS) is a ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year LMBS returned +4.17% while VOO returned +23.65%. Year to date, LMBS is up 1.65% versus a gain of 13.53% for VOO.
Over three years, LMBS compounded at +5.64% per year against +21.27% for VOO; over five years the annualized figures are +3.04% and +13.52% respectively. Across the full 12-year window we track, VOO has the edge at +13.57% annualized vs +1.50%. 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 2.2% for LMBS. 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 -8.5% for LMBS 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LMBS charges 0.65% per year while VOO charges 0.03%. On a $10,000 position that is $65 vs $3 annually, a gap of $62 per year that compounds over a long holding period. On income, LMBS currently yields 4.10% against 1.09% for VOO.
Holdings Overlap
LMBS and VOO share 0 holdings out of 1269 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, LMBS or VOO?
LMBS has an expense ratio of 0.65% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, LMBS or VOO?
Over the past year LMBS returned +4.17% vs +23.65% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (12 years), LMBS annualized +1.50% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, LMBS or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 2.2% for LMBS. Worst drawdown: LMBS -8.5% vs VOO -34.3%.
Should I hold both LMBS and VOO?
LMBS and VOO have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LMBS and VOO?
LMBS and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1269 unique securities.
Which pays a higher dividend, LMBS or VOO?
LMBS yields 4.10% while VOO yields 1.09%, so LMBS currently pays the higher dividend yield.
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