USHY vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. USHY offers more diversification with 1577 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: USHY

Side-by-Side Comparison

MetricUSHYVOOWinner
Expense Ratio0.08%0.03%
AUM$29.0B$979.0B
Dividend Yield6.89%1.09%
Holdings1,893509
YTD Return-1.71%+9.95%
1Y Return+1.21%+19.58%
3Y Return (annualized)+7.04%+19.43%
5Y Return (annualized)+3.25%+12.89%
Volatility (annualized)9.7%14.2%
Max Drawdown-31.0%-34.3%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionOct 25, 2017Sep 7, 2010

USHY vs VOO Performance

iShares Broad USD High Yield Corporate Bond ETF (USHY) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year USHY returned +1.21% while VOO returned +19.58%. Year to date, USHY is down 1.71% versus a gain of 9.95% for VOO.

Over three years, USHY compounded at +7.04% per year against +19.43% for VOO; over five years the annualized figures are +3.25% and +12.89% respectively. Across the full 9-year window we track, VOO has the edge at +13.35% annualized vs +2.09%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 9.7% for USHY. 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 -31.0% for USHY 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

USHY 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, USHY currently yields 6.89% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

USHY and VOO share 0 holdings out of 2082 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, USHY or VOO?

USHY 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, USHY or VOO?

Over the past year USHY returned +1.21% vs +19.58% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (9 years), USHY annualized +2.09% vs +13.35% for VOO. Past performance does not guarantee future results.

Which is riskier, USHY or VOO?

VOO has been the more volatile fund at 14.2% annualized versus 9.7% for USHY. Worst drawdown: USHY -31.0% vs VOO -34.3%.

Should I hold both USHY and VOO?

USHY and VOO have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between USHY and VOO?

USHY and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2082 unique securities.

Which pays a higher dividend, USHY or VOO?

USHY yields 6.89% while VOO yields 1.09%, so USHY currently pays the higher dividend yield.

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