VOO vs VTC
VOO vs VTC
Vanguard S&P 500 ETF vs Vanguard Total Corporate Bond ETF
Quick Verdict
VOO delivered stronger 1-year returns. VTC offers more diversification with 4198 holdings.
Side-by-Side Comparison
| Metric | VOO | VTC | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.03% | |
| AUM | $979.0B | $1.8B | |
| Dividend Yield | 1.09% | 4.17% | |
| Holdings | 509 | 4,840 | |
| YTD Return | +13.11% | -0.59% | |
| 1Y Return | +22.88% | +1.57% | |
| 3Y Return (annualized) | +21.08% | +4.87% | |
| 5Y Return (annualized) | +13.26% | -0.22% | |
| Volatility (annualized) | 14.1% | 7.3% | |
| Max Drawdown | -34.3% | -22.4% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Fixed Income | |
| Inception | Sep 7, 2010 | Nov 7, 2017 |
VOO vs VTC Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and Vanguard Total Corporate Bond ETF (VTC) is a ETF from Vanguard (US). Over the past year VOO returned +22.88% while VTC returned +1.57%. Year to date, VOO is up 13.11% versus a loss of 0.59% for VTC.
Over three years, VOO compounded at +21.08% per year against +4.87% for VTC; over five years the annualized figures are +13.26% and -0.22% respectively. Across the full 9-year window we track, VOO has the edge at +13.54% annualized vs +0.96%. 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 7.3% for VTC. 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 -22.4% for VTC. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOO charges 0.03% per year while VTC charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, VOO currently yields 1.09% against 4.17% for VTC.
Holdings Overlap
VOO and VTC share 2 holdings out of 4701 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VOO | Weight in VTC | Difference |
|---|---|---|---|
| MMC 4.75 03/15/39 | 0.12% | 0.01% | 0.11% |
| CNP | 0.04% | 0.01% | 0.03% |
Frequently Asked Questions
Which is cheaper, VOO or VTC?
VOO has an expense ratio of 0.03% while VTC charges 0.03%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VOO or VTC?
Over the past year VOO returned +22.88% vs +1.57% for VTC, so VOO leads on 1-year performance. Over the longest common window we track (9 years), VOO annualized +13.54% vs +0.96% for VTC. Past performance does not guarantee future results.
Which is riskier, VOO or VTC?
VOO has been the more volatile fund at 14.1% annualized versus 7.3% for VTC. Worst drawdown: VOO -34.3% vs VTC -22.4%.
Should I hold both VOO and VTC?
VOO and VTC have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and VTC?
VOO and VTC share 2 common holdings with a 0.0% weight overlap. Combined, they hold 4701 unique securities.
Which pays a higher dividend, VOO or VTC?
VOO yields 1.09% while VTC yields 4.17%, so VTC currently pays the higher dividend yield.
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