SDHY vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricSDHYVOOWinner
Expense Ratio1.90%0.03%
AUM$441M$979.0B
Dividend Yield7.47%1.09%
Holdings572509
YTD Return+2.20%+13.31%
1Y Return+4.72%+24.01%
3Y Return (annualized)+10.36%+21.17%
5Y Return (annualized)+4.66%+13.34%
Volatility (annualized)10.1%14.1%
Max Drawdown-23.1%-34.3%
Fund FamilyPGIM InvestmentsVanguard (US)
CategoryFixed IncomeEquity
InceptionNov 25, 2020Sep 7, 2010

SDHY vs VOO Performance

PGIM Short Duration High Yield Opportunities Fund (SDHY) is a ETF from PGIM Investments and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year SDHY returned +4.72% while VOO returned +24.01%. Year to date, SDHY is up 2.20% versus a gain of 13.31% for VOO.

Over three years, SDHY compounded at +10.36% per year against +21.17% for VOO; over five years the annualized figures are +4.66% and +13.34% respectively. Across the full 6-year window we track, VOO has the edge at +13.55% annualized vs +4.09%. 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 10.1% for SDHY. 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 -23.1% for SDHY 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SDHY charges 1.90% per year while VOO charges 0.03%. On a $10,000 position that is $190 vs $3 annually, a gap of $187 per year that compounds over a long holding period. On income, SDHY currently yields 7.47% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

SDHY and VOO share 0 holdings out of 961 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, SDHY or VOO?

SDHY has an expense ratio of 1.90% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $187 per year of difference.

Which performed better, SDHY or VOO?

Over the past year SDHY returned +4.72% vs +24.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (6 years), SDHY annualized +4.09% vs +13.55% for VOO. Past performance does not guarantee future results.

Which is riskier, SDHY or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 10.1% for SDHY. Worst drawdown: SDHY -23.1% vs VOO -34.3%.

Should I hold both SDHY and VOO?

SDHY and VOO have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SDHY and VOO?

SDHY and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 961 unique securities.

Which pays a higher dividend, SDHY or VOO?

SDHY yields 7.47% while VOO yields 1.09%, so SDHY currently pays the higher dividend yield.

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