VLU vs VOO

Quick Verdict

VOO has a lower expense ratio. VLU delivered stronger 1-year returns. VLU offers more diversification with 1497 holdings.

Lower Fees: VOOHigher Returns: VLUMore Diversified: VLU

Side-by-Side Comparison

MetricVLUVOOWinner
Expense Ratio0.12%0.03%
AUM$750M$979.0B
Dividend Yield1.63%1.09%
Holdings1,506509
YTD Return+18.20%+13.53%
1Y Return+31.34%+23.65%
3Y Return (annualized)+19.63%+21.27%
5Y Return (annualized)+13.39%+13.52%
Volatility (annualized)15.8%14.1%
Max Drawdown-37.9%-34.3%
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryEquityEquity
InceptionOct 24, 2012Sep 7, 2010

VLU vs VOO Performance

State Street SPDR S&P 1500 Value Tilt ETF (VLU) is a ETF from State Street Investment Management and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VLU returned +31.34% while VOO returned +23.65%. Year to date, VLU is up 18.20% versus a gain of 13.53% for VOO.

Over three years, VLU compounded at +19.63% per year against +21.27% for VOO; over five years the annualized figures are +13.39% and +13.52% respectively. Across the full 14-year window we track, VOO has the edge at +13.57% annualized vs +11.71%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VLU has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 14.1% for VOO. 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 -37.9% for VLU 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

VLU charges 0.12% per year while VOO charges 0.03%. On a $10,000 position that is $12 vs $3 annually, a gap of $9 per year that compounds over a long holding period. On income, VLU currently yields 1.63% against 1.09% for VOO.

Holdings Overlap

57.1%overlap

VLU and VOO share 491 holdings out of 1511 unique holdings combined, representing a 57.1% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in VLUWeight in VOODifference
NVDA0.96%7.51%6.55%
AAPL1.80%6.59%4.79%
MSFT2.56%4.30%1.74%
AMZNProProPro
GOOGProProPro
GOOGLProProPro
BRK.BProProPro
AVGOProProPro
METAProProPro
JPMProProPro
See all 10 holdings VLU shares with VOO
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, VLU or VOO?

VLU has an expense ratio of 0.12% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $9 per year of difference.

Which performed better, VLU or VOO?

Over the past year VLU returned +31.34% vs +23.65% for VOO, so VLU leads on 1-year performance. Over the longest common window we track (14 years), VLU annualized +11.71% vs +13.57% for VOO. Past performance does not guarantee future results.

Which is riskier, VLU or VOO?

VLU has been the more volatile fund at 15.8% annualized versus 14.1% for VOO. Worst drawdown: VLU -37.9% vs VOO -34.3%.

Should I hold both VLU and VOO?

VLU and VOO have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between VLU and VOO?

VLU and VOO share 491 common holdings with a 57.1% weight overlap. Combined, they hold 1511 unique securities.

Which pays a higher dividend, VLU or VOO?

VLU yields 1.63% while VOO yields 1.09%, so VLU currently pays the higher dividend yield.

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