UCON vs VOO
UCON vs VOO
First Trust Smith Unconstrained Bond 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 | UCON | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.86% | 0.03% | |
| AUM | $3.3B | $979.0B | |
| Dividend Yield | 5.11% | 1.09% | |
| Holdings | 456 | 509 | |
| YTD Return | +0.72% | +13.31% | |
| 1Y Return | +3.71% | +24.01% | |
| 3Y Return (annualized) | +5.47% | +21.17% | |
| 5Y Return (annualized) | +2.73% | +13.34% | |
| Volatility (annualized) | 4.5% | 14.1% | |
| Max Drawdown | -15.3% | -34.3% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 4, 2018 | Sep 7, 2010 |
UCON vs VOO Performance
First Trust Smith Unconstrained Bond ETF (UCON) is a ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year UCON returned +3.71% while VOO returned +24.01%. Year to date, UCON is up 0.72% versus a gain of 13.31% for VOO.
Over three years, UCON compounded at +5.47% per year against +21.17% for VOO; over five years the annualized figures are +2.73% and +13.34% respectively. Across the full 8-year window we track, VOO has the edge at +13.55% annualized vs +2.57%. 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 4.5% for UCON. 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 -15.3% for UCON 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
UCON charges 0.86% per year while VOO charges 0.03%. On a $10,000 position that is $86 vs $3 annually, a gap of $83 per year that compounds over a long holding period. On income, UCON currently yields 5.11% against 1.09% for VOO.
Holdings Overlap
UCON and VOO share 1 holdings out of 824 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in UCON | Weight in VOO | Difference |
|---|---|---|---|
| C | 0.15% | 0.36% | 0.21% |
Frequently Asked Questions
Which is cheaper, UCON or VOO?
UCON has an expense ratio of 0.86% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $83 per year of difference.
Which performed better, UCON or VOO?
Over the past year UCON returned +3.71% vs +24.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (8 years), UCON annualized +2.57% vs +13.55% for VOO. Past performance does not guarantee future results.
Which is riskier, UCON or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 4.5% for UCON. Worst drawdown: UCON -15.3% vs VOO -34.3%.
Should I hold both UCON and VOO?
UCON and VOO have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between UCON and VOO?
UCON and VOO share 1 common holdings with a 0.1% weight overlap. Combined, they hold 824 unique securities.
Which pays a higher dividend, UCON or VOO?
UCON yields 5.11% while VOO yields 1.09%, so UCON currently pays the higher dividend yield.
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