MSD vs VOO
MSD vs VOO
Morgan Stanley Emerging Markets Debt 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 | MSD | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.19% | 0.03% | |
| AUM | - | $979.0B | |
| Dividend Yield | 7.66% | 1.09% | |
| Holdings | 358 | 509 | |
| YTD Return | +3.06% | +11.51% | |
| 1Y Return | +6.82% | +21.46% | |
| 3Y Return (annualized) | +15.53% | +20.86% | |
| 5Y Return (annualized) | +4.05% | +13.01% | |
| Volatility (annualized) | 18.4% | 14.1% | |
| Max Drawdown | -66.0% | -34.3% | |
| Fund Family | Morgan Stanley Investment Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 23, 1993 | Sep 7, 2010 |
MSD vs VOO Performance
Morgan Stanley Emerging Markets Debt Fund Inc. (MSD) is a ETF from Morgan Stanley Investment Management and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year MSD returned +6.82% while VOO returned +21.46%. Year to date, MSD is up 3.06% versus a gain of 11.51% for VOO.
Over three years, MSD compounded at +15.53% per year against +20.86% for VOO; over five years the annualized figures are +4.05% and +13.01% respectively. Across the full 16-year window we track, VOO has the edge at +13.44% annualized vs -0.26%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MSD has been the more volatile fund, with annualized monthly volatility of 18.4% compared with 14.1% for VOO. 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 -66.0% for MSD 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSD charges 1.19% per year while VOO charges 0.03%. On a $10,000 position that is $119 vs $3 annually, a gap of $116 per year that compounds over a long holding period. On income, MSD currently yields 7.66% against 1.09% for VOO.
Holdings Overlap
MSD and VOO share 0 holdings out of 558 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, MSD or VOO?
MSD has an expense ratio of 1.19% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $116 per year of difference.
Which performed better, MSD or VOO?
Over the past year MSD returned +6.82% vs +21.46% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), MSD annualized -0.26% vs +13.44% for VOO. Past performance does not guarantee future results.
Which is riskier, MSD or VOO?
MSD has been the more volatile fund at 18.4% annualized versus 14.1% for VOO. Worst drawdown: MSD -66.0% vs VOO -34.3%.
Should I hold both MSD and VOO?
MSD and VOO have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSD and VOO?
MSD and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 558 unique securities.
Which pays a higher dividend, MSD or VOO?
MSD yields 7.66% while VOO yields 1.09%, so MSD currently pays the higher dividend yield.
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