VOO vs XFLT
VOO vs XFLT
Vanguard S&P 500 ETF vs XAI Octagon Floating Rate & Alternative Income Trust
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 | XFLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 6.29% | |
| AUM | $979.0B | $345M | |
| Dividend Yield | 1.09% | 16.04% | |
| Holdings | 509 | 535 | |
| YTD Return | +13.53% | -5.70% | |
| 1Y Return | +23.65% | -13.85% | |
| 3Y Return (annualized) | +21.27% | -1.66% | |
| 5Y Return (annualized) | +13.52% | -1.78% | |
| Volatility (annualized) | 14.1% | 25.7% | |
| Max Drawdown | -34.3% | -64.6% | |
| Fund Family | Vanguard (US) | XA Investments LLC | |
| Category | Equity | Fixed Income | |
| Inception | Sep 7, 2010 | Sep 27, 2017 |
VOO vs XFLT Performance
Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US) and XAI Octagon Floating Rate & Alternative Income Trust (XFLT) is a ETF from XA Investments LLC. Over the past year VOO returned +23.65% while XFLT returned -13.85%. Year to date, VOO is up 13.53% versus a loss of 5.70% for XFLT.
Over three years, VOO compounded at +21.27% per year against -1.66% for XFLT; over five years the annualized figures are +13.52% and -1.78% respectively. Across the full 9-year window we track, VOO has the edge at +13.57% annualized vs -1.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XFLT has been the more volatile fund, with annualized monthly volatility of 25.7% 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 -64.6% for XFLT. 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VOO charges 0.03% per year while XFLT charges 6.29%. On a $10,000 position that is $3 vs $629 annually, a gap of $626 per year that compounds over a long holding period. On income, VOO currently yields 1.09% against 16.04% for XFLT.
Holdings Overlap
VOO and XFLT share 1 holdings out of 720 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 XFLT | Difference |
|---|---|---|---|
| PPG | 0.04% | 1.32% | 1.28% |
Frequently Asked Questions
Which is cheaper, VOO or XFLT?
VOO has an expense ratio of 0.03% while XFLT charges 6.29%. VOO is the cheaper option. On a $10,000 investment, that is $626 per year of difference.
Which performed better, VOO or XFLT?
Over the past year VOO returned +23.65% vs -13.85% for XFLT, so VOO leads on 1-year performance. Over the longest common window we track (9 years), VOO annualized +13.57% vs -1.79% for XFLT. Past performance does not guarantee future results.
Which is riskier, VOO or XFLT?
XFLT has been the more volatile fund at 25.7% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs XFLT -64.6%.
Should I hold both VOO and XFLT?
VOO and XFLT have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VOO and XFLT?
VOO and XFLT share 1 common holdings with a 0.0% weight overlap. Combined, they hold 720 unique securities.
Which pays a higher dividend, VOO or XFLT?
VOO yields 1.09% while XFLT yields 16.04%, so XFLT currently pays the higher dividend yield.
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