USIG vs VOO
USIG vs VOO
iShares Broad USD Investment Grade Corporate Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. USIG offers more diversification with 9966 holdings.
Side-by-Side Comparison
| Metric | USIG | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.03% | |
| AUM | $17.3B | $979.0B | |
| Dividend Yield | 4.72% | 1.09% | |
| Holdings | 11,462 | 509 | |
| YTD Return | -0.31% | +13.80% | |
| 1Y Return | +2.15% | +23.71% | |
| 3Y Return (annualized) | +5.19% | +21.50% | |
| 5Y Return (annualized) | +0.23% | +13.44% | |
| Volatility (annualized) | 7.4% | 14.1% | |
| Max Drawdown | -21.6% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | Sep 7, 2010 |
USIG vs VOO Performance
iShares Broad USD Investment Grade Corporate Bond ETF (USIG) 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 USIG returned +2.15% while VOO returned +23.71%. Year to date, USIG is down 0.31% versus a gain of 13.80% for VOO.
Over three years, USIG compounded at +5.19% per year against +21.50% for VOO; over five years the annualized figures are +0.23% and +13.44% respectively. Across the full 8-year window we track, VOO has the edge at +13.58% annualized vs +1.83%. 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 7.4% for USIG. 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 -21.6% for USIG 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
USIG charges 0.04% per year while VOO charges 0.03%. On a $10,000 position that is $4 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, USIG currently yields 4.72% against 1.09% for VOO.
Holdings Overlap
USIG and VOO share 9 holdings out of 10462 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 USIG | Weight in VOO | Difference |
|---|---|---|---|
| LRCX | 0.00% | 0.84% | 0.84% |
| GE | 0.01% | 0.60% | 0.59% |
| DUK | 0.01% | 0.15% | 0.14% |
| MMC 4.75 03/15/39 | Pro | Pro | Pro |
| AON | Pro | Pro | Pro |
| KDP | Pro | Pro | Pro |
| ADM | Pro | Pro | Pro |
| HUBB | Pro | Pro | Pro |
| CNP | Pro | Pro | Pro |
See all 9 holdings USIG shares with VOO Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, USIG or VOO?
USIG has an expense ratio of 0.04% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, USIG or VOO?
Over the past year USIG returned +2.15% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (8 years), USIG annualized +1.83% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, USIG or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 7.4% for USIG. Worst drawdown: USIG -21.6% vs VOO -34.3%.
Should I hold both USIG and VOO?
USIG 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 USIG and VOO?
USIG and VOO share 9 common holdings with a 0.1% weight overlap. Combined, they hold 10462 unique securities.
Which pays a higher dividend, USIG or VOO?
USIG yields 4.72% while VOO yields 1.09%, so USIG currently pays the higher dividend yield.
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