VOO vs WEA
VOO vs WEA
Vanguard S&P 500 ETF vs Western Asset Premier Bond 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 | WEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 1.22% | |
| AUM | $979.0B | $132M | |
| Dividend Yield | 1.09% | 7.44% | |
| Holdings | 509 | 386 | |
| YTD Return | +13.80% | -1.42% | |
| 1Y Return | +23.71% | +3.79% | |
| 3Y Return (annualized) | +21.50% | +6.56% | |
| 5Y Return (annualized) | +13.44% | +0.63% | |
| Volatility (annualized) | 14.1% | 15.7% | |
| Max Drawdown | -34.3% | -64.9% | |
| Fund Family | Vanguard (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Sep 7, 2010 | Mar 28, 2002 |
VOO vs WEA Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and Western Asset Premier Bond Fund (WEA) is a ETF from Franklin Templeton Investments (US). Over the past year VOO returned +23.71% while WEA returned +3.79%. Year to date, VOO is up 13.80% versus a loss of 1.42% for WEA.
Over three years, VOO compounded at +21.50% per year against +6.56% for WEA; over five years the annualized figures are +13.44% and +0.63% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs +0.17%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WEA has been the more volatile fund, with annualized monthly volatility of 15.7% 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 -34.3% for VOO and -64.9% for WEA. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOO charges 0.03% per year while WEA charges 1.22%. On a $10,000 position that is $3 vs $122 annually, a gap of $119 per year that compounds over a long holding period. On income, VOO currently yields 1.09% against 7.44% for WEA.
Holdings Overlap
VOO and WEA share 0 holdings out of 751 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 WEA?
VOO has an expense ratio of 0.03% while WEA charges 1.22%. VOO is the cheaper option. On a $10,000 investment, that is $119 per year of difference.
Which performed better, VOO or WEA?
Over the past year VOO returned +23.71% vs +3.79% for WEA, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.58% vs +0.17% for WEA. Past performance does not guarantee future results.
Which is riskier, VOO or WEA?
WEA has been the more volatile fund at 15.7% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs WEA -64.9%.
Should I hold both VOO and WEA?
VOO and WEA have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and WEA?
VOO and WEA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 751 unique securities.
Which pays a higher dividend, VOO or WEA?
VOO yields 1.09% while WEA yields 7.44%, so WEA currently pays the higher dividend yield.
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