VBND vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricVBNDVOOWinner
Expense Ratio0.41%0.03%
AUM$525M$979.0B
Dividend Yield4.25%1.09%
Holdings192509
YTD Return-0.19%+9.95%
1Y Return+2.97%+19.58%
3Y Return (annualized)+4.39%+19.43%
5Y Return (annualized)-0.26%+12.89%
Volatility (annualized)5.4%14.2%
Max Drawdown-19.0%-34.3%
Fund FamilyVident FinancialVanguard (US)
CategoryFixed IncomeEquity
InceptionOct 15, 2014Sep 7, 2010

VBND vs VOO Performance

Vident US Bond Strategy ETF (VBND) is a ETF from Vident Financial and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VBND returned +2.97% while VOO returned +19.58%. Year to date, VBND is down 0.19% versus a gain of 9.95% for VOO.

Over three years, VBND compounded at +4.39% per year against +19.43% for VOO; over five years the annualized figures are -0.26% and +12.89% respectively. Across the full 12-year window we track, VOO has the edge at +13.35% annualized vs +0.29%. 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 5.4% for VBND. 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 -19.0% for VBND 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VBND charges 0.41% per year while VOO charges 0.03%. On a $10,000 position that is $41 vs $3 annually, a gap of $38 per year that compounds over a long holding period. On income, VBND currently yields 4.25% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

VBND and VOO share 0 holdings out of 657 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, VBND or VOO?

VBND has an expense ratio of 0.41% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $38 per year of difference.

Which performed better, VBND or VOO?

Over the past year VBND returned +2.97% vs +19.58% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (12 years), VBND annualized +0.29% vs +13.35% for VOO. Past performance does not guarantee future results.

Which is riskier, VBND or VOO?

VOO has been the more volatile fund at 14.2% annualized versus 5.4% for VBND. Worst drawdown: VBND -19.0% vs VOO -34.3%.

Should I hold both VBND and VOO?

VBND and VOO have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VBND and VOO?

VBND and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 657 unique securities.

Which pays a higher dividend, VBND or VOO?

VBND yields 4.25% while VOO yields 1.09%, so VBND currently pays the higher dividend yield.

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