VOO vs VSHY
VOO vs VSHY
Vanguard S&P 500 ETF vs Virtus Newfleet Short Duration High Yield Bond 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 | VOO | VSHY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.39% | |
| AUM | $979.0B | $31M | |
| Dividend Yield | 1.09% | 6.39% | |
| Holdings | 509 | 171 | |
| YTD Return | +11.51% | +2.99% | |
| 1Y Return | +21.46% | +5.73% | |
| 3Y Return (annualized) | +20.86% | +8.03% | |
| 5Y Return (annualized) | +13.01% | +4.10% | |
| Volatility (annualized) | 14.1% | 6.2% | |
| Max Drawdown | -34.3% | -18.6% | |
| Fund Family | Vanguard (US) | Virtus Investment Partners | |
| Category | Equity | Fixed Income | |
| Inception | Sep 7, 2010 | Dec 5, 2016 |
VOO vs VSHY Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and Virtus Newfleet Short Duration High Yield Bond ETF (VSHY) is a ETF from Virtus Investment Partners. Over the past year VOO returned +21.46% while VSHY returned +5.73%. Year to date, VOO is up 11.51% versus a gain of 2.99% for VSHY.
Over three years, VOO compounded at +20.86% per year against +8.03% for VSHY; over five years the annualized figures are +13.01% and +4.10% respectively. Across the full 10-year window we track, VOO has the edge at +13.44% annualized vs +2.18%. 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 6.2% for VSHY. 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 -34.3% for VOO and -18.6% for VSHY. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VOO charges 0.03% per year while VSHY charges 0.39%. On a $10,000 position that is $3 vs $39 annually, a gap of $36 per year that compounds over a long holding period. On income, VOO currently yields 1.09% against 6.39% for VSHY.
Holdings Overlap
VOO and VSHY share 0 holdings out of 506 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, VOO or VSHY?
VOO has an expense ratio of 0.03% while VSHY charges 0.39%. VOO is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, VOO or VSHY?
Over the past year VOO returned +21.46% vs +5.73% for VSHY, so VOO leads on 1-year performance. Over the longest common window we track (10 years), VOO annualized +13.44% vs +2.18% for VSHY. Past performance does not guarantee future results.
Which is riskier, VOO or VSHY?
VOO has been the more volatile fund at 14.1% annualized versus 6.2% for VSHY. Worst drawdown: VOO -34.3% vs VSHY -18.6%.
Should I hold both VOO and VSHY?
VOO and VSHY have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and VSHY?
VOO and VSHY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, VOO or VSHY?
VOO yields 1.09% while VSHY yields 6.39%, so VSHY currently pays the higher dividend yield.
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