SHM vs VOO
SHM vs VOO
State Street SPDR Nuveen ICE Short Term Municipal Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. SHM offers more diversification with 671 holdings.
Side-by-Side Comparison
| Metric | SHM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.03% | |
| AUM | $3.5B | $979.0B | |
| Dividend Yield | 2.66% | 1.09% | |
| Holdings | 988 | 509 | |
| YTD Return | +0.50% | +9.95% | |
| 1Y Return | +1.88% | +19.58% | |
| 3Y Return (annualized) | +2.65% | +19.43% | |
| 5Y Return (annualized) | +0.76% | +12.89% | |
| Volatility (annualized) | 2.6% | 14.2% | |
| Max Drawdown | -11.6% | -34.3% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Oct 10, 2007 | Sep 7, 2010 |
SHM vs VOO Performance
State Street SPDR Nuveen ICE Short Term Municipal Bond ETF (SHM) is a ETF from State Street Investment Management and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year SHM returned +1.88% while VOO returned +19.58%. Year to date, SHM is up 0.50% versus a gain of 9.95% for VOO.
Over three years, SHM compounded at +2.65% per year against +19.43% for VOO; over five years the annualized figures are +0.76% and +12.89% respectively. Across the full 16-year window we track, VOO has the edge at +13.35% annualized vs +0.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 2.6% for SHM. 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 -11.6% for SHM 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SHM 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, SHM currently yields 2.66% against 1.09% for VOO.
Holdings Overlap
SHM and VOO share 0 holdings out of 1176 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, SHM or VOO?
SHM 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, SHM or VOO?
Over the past year SHM returned +1.88% vs +19.58% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), SHM annualized +0.75% vs +13.35% for VOO. Past performance does not guarantee future results.
Which is riskier, SHM or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 2.6% for SHM. Worst drawdown: SHM -11.6% vs VOO -34.3%.
Should I hold both SHM and VOO?
SHM and VOO have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SHM and VOO?
SHM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1176 unique securities.
Which pays a higher dividend, SHM or VOO?
SHM yields 2.66% while VOO yields 1.09%, so SHM currently pays the higher dividend yield.
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