TAGG vs VOO
TAGG vs VOO
T Rowe Price QM US Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. TAGG offers more diversification with 1212 holdings.
Side-by-Side Comparison
| Metric | TAGG | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.03% | |
| AUM | $2.3B | $979.0B | |
| Dividend Yield | 4.57% | 1.09% | |
| Holdings | 1,595 | 509 | |
| YTD Return | -0.54% | +9.95% | |
| 1Y Return | +2.99% | +19.58% | |
| 3Y Return (annualized) | +4.13% | +19.43% | |
| 5Y Return (annualized) | - | +12.89% | |
| Volatility (annualized) | 6.7% | 14.2% | |
| Max Drawdown | -17.3% | -34.3% | |
| Fund Family | T.Rowe Price | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 28, 2021 | Sep 7, 2010 |
TAGG vs VOO Performance
T Rowe Price QM US Bond ETF (TAGG) is a ETF from T.Rowe Price and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year TAGG returned +2.99% while VOO returned +19.58%. Year to date, TAGG is down 0.54% versus a gain of 9.95% for VOO.
Over three years, TAGG compounded at +4.13% per year against +19.43% for VOO. Across the full 5-year window we track, VOO has the edge at +13.35% annualized vs +0.01%. 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 6.7% for TAGG. 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 -17.3% for TAGG 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAGG charges 0.08% per year while VOO charges 0.03%. On a $10,000 position that is $8 vs $3 annually, a gap of $5 per year that compounds over a long holding period. On income, TAGG currently yields 4.57% against 1.09% for VOO.
Holdings Overlap
TAGG and VOO share 1 holdings out of 1716 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in TAGG | Weight in VOO | Difference |
|---|---|---|---|
| GE | 0.03% | 0.60% | 0.57% |
Frequently Asked Questions
Which is cheaper, TAGG or VOO?
TAGG has an expense ratio of 0.08% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, TAGG or VOO?
Over the past year TAGG returned +2.99% vs +19.58% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (5 years), TAGG annualized +0.01% vs +13.35% for VOO. Past performance does not guarantee future results.
Which is riskier, TAGG or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 6.7% for TAGG. Worst drawdown: TAGG -17.3% vs VOO -34.3%.
Should I hold both TAGG and VOO?
TAGG and VOO have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TAGG and VOO?
TAGG and VOO share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1716 unique securities.
Which pays a higher dividend, TAGG or VOO?
TAGG yields 4.57% while VOO yields 1.09%, so TAGG currently pays the higher dividend yield.
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