TFLR vs VOO
TFLR vs VOO
T. Rowe Price Floating Rate ETF 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 | TFLR | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.61% | 0.03% | |
| AUM | $671M | $979.0B | |
| Dividend Yield | 6.79% | 1.09% | |
| Holdings | 347 | 509 | |
| YTD Return | +2.18% | +13.11% | |
| 1Y Return | +4.95% | +22.88% | |
| 3Y Return (annualized) | +7.15% | +21.08% | |
| 5Y Return (annualized) | - | +13.26% | |
| Volatility (annualized) | 2.5% | 14.1% | |
| Max Drawdown | -4.0% | -34.3% | |
| Fund Family | T.Rowe Price | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 16, 2022 | Sep 7, 2010 |
TFLR vs VOO Performance
T. Rowe Price Floating Rate ETF (TFLR) is a ETF from T.Rowe Price and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year TFLR returned +4.95% while VOO returned +22.88%. Year to date, TFLR is up 2.18% versus a gain of 13.11% for VOO.
Over three years, TFLR compounded at +7.15% per year against +21.08% for VOO. Across the full 4-year window we track, VOO has the edge at +13.54% annualized vs +7.58%. 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 2.5% for TFLR. 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 -4.0% for TFLR 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
TFLR charges 0.61% per year while VOO charges 0.03%. On a $10,000 position that is $61 vs $3 annually, a gap of $58 per year that compounds over a long holding period. On income, TFLR currently yields 6.79% against 1.09% for VOO.
Holdings Overlap
TFLR and VOO share 0 holdings out of 676 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, TFLR or VOO?
TFLR has an expense ratio of 0.61% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $58 per year of difference.
Which performed better, TFLR or VOO?
Over the past year TFLR returned +4.95% vs +22.88% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (4 years), TFLR annualized +7.58% vs +13.54% for VOO. Past performance does not guarantee future results.
Which is riskier, TFLR or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 2.5% for TFLR. Worst drawdown: TFLR -4.0% vs VOO -34.3%.
Should I hold both TFLR and VOO?
TFLR 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 TFLR and VOO?
TFLR and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 676 unique securities.
Which pays a higher dividend, TFLR or VOO?
TFLR yields 6.79% while VOO yields 1.09%, so TFLR currently pays the higher dividend yield.
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