VOO vs WDI
VOO vs WDI
Vanguard S&P 500 ETF vs Western Asset Diversified Income Fund
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 | WDI | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 1.82% | |
| AUM | $979.0B | $723M | |
| Dividend Yield | 1.09% | 12.55% | |
| Holdings | 509 | 410 | |
| YTD Return | +11.51% | +1.66% | |
| 1Y Return | +21.46% | -1.21% | |
| 3Y Return (annualized) | +20.86% | +10.93% | |
| 5Y Return (annualized) | +13.01% | +2.64% | |
| Volatility (annualized) | 14.1% | 13.9% | |
| Max Drawdown | -34.3% | -32.5% | |
| Fund Family | Vanguard (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Sep 7, 2010 | Jun 24, 2021 |
VOO vs WDI Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and Western Asset Diversified Income Fund (WDI) is a ETF from Franklin Templeton Investments (US). Over the past year VOO returned +21.46% while WDI returned -1.21%. Year to date, VOO is up 11.51% versus a gain of 1.66% for WDI.
Over three years, VOO compounded at +20.86% per year against +10.93% for WDI; over five years the annualized figures are +13.01% and +2.64% respectively. Across the full 5-year window we track, VOO has the edge at +13.44% annualized vs +2.78%. 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 13.9% for WDI. 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 -32.5% for WDI. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOO charges 0.03% per year while WDI charges 1.82%. On a $10,000 position that is $3 vs $182 annually, a gap of $179 per year that compounds over a long holding period. On income, VOO currently yields 1.09% against 12.55% for WDI.
Holdings Overlap
VOO and WDI share 0 holdings out of 697 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 WDI?
VOO has an expense ratio of 0.03% while WDI charges 1.82%. VOO is the cheaper option. On a $10,000 investment, that is $179 per year of difference.
Which performed better, VOO or WDI?
Over the past year VOO returned +21.46% vs -1.21% for WDI, so VOO leads on 1-year performance. Over the longest common window we track (5 years), VOO annualized +13.44% vs +2.78% for WDI. Past performance does not guarantee future results.
Which is riskier, VOO or WDI?
VOO has been the more volatile fund at 14.1% annualized versus 13.9% for WDI. Worst drawdown: VOO -34.3% vs WDI -32.5%.
Should I hold both VOO and WDI?
VOO and WDI have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and WDI?
VOO and WDI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 697 unique securities.
Which pays a higher dividend, VOO or WDI?
VOO yields 1.09% while WDI yields 12.55%, so WDI currently pays the higher dividend yield.
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