VIG vs. VOO: Head-To-Head ETF Comparison (2024)

FAQs

VIG vs. VOO: Head-To-Head ETF Comparison? ›

VOO - Performance Comparison. In the year-to-date period, VIG achieves a 4.43% return, which is significantly lower than VOO's 7.68% return. Over the past 10 years, VIG has underperformed VOO with an annualized return of 11.09%, while VOO has yielded a comparatively higher 12.60% annualized return.

Both VOO and VIG are considered high-volume assets. They're less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets. VOO has more assets under management than VIG by $258,475,286,690. Higher AUM can be associated with better liquidity and lower slippage in trading.

SPYG and VIG both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index. VIG may offer dividends, while SPYG does not.

Currently there's no upside potential for VIG, based on the analysts' average price target. Is VIG a Buy, Sell or Hold? VIG has a conensus rating of Moderate Buy which is based on 229 buy ratings, 103 hold ratings and 10 sell ratings.

VOO VS VO: Tracking and Exposure

VOO tracks the S&P 500 Index, providing investors with exposure to the largest U.S. companies by market capitalization. VO, however, targets mid-cap companies that have the potential for growth.

VYM is better diversified, while VIG has more holdings concentration risk. VYM has 50% more holdings than VIG. Both ETFs are available to purchase from any online broker.

Solid Long-Term Performance

Since its inception in 2006, VIG has returned 8.9% on an annualized basis.

VIG - Volatility Comparison. SPDR Portfolio S&P 500 High Dividend ETF (SPYD) has a higher volatility of 5.22% compared to Vanguard Dividend Appreciation ETF (VIG) at 3.07%. This indicates that SPYD's price experiences larger fluctuations and is considered to be riskier than VIG based on this measure.

Summary. VIG is often considered a safer, less volatile way to invest in better quality stocks than what are found in total stock market funds. Backtesting VIG is misleading as its index and its holdings changed in Sept 2021.

What is the average return on VIG stock? ›

Performance and Risk

In the past 52-week period, it has traded between $147.24 and $178.77. The ETF has a beta of 0.84 and standard deviation of 14.91% for the trailing three-year period, making it a medium risk choice in the space. With about 314 holdings, it effectively diversifies company-specific risk.

The VOO mutual fund equivalent is Vanguard's S&P 500 Index Fund Admiral Shares (VFIAX). The VOO Fidelity equivalent is FXAIX, the Fidelity ® 500 Index Fund. Fidelity does not have a VOO or VFIAX ETF equivalent. The State Street SPDR ETF equivalent for both funds is the SPDR S&P 500 ETF Trust (SPY).

Here's a summary of which one to choose:

If you want to own only the biggest and safest stocks, choose VOO. If you want more diversification and exposure to mid-caps and small-caps, choose VTI. If you can't decide, consider simply buying both of them (assuming that commissions are low or free).

If you are a cost-conscious investor, the VOO, IVV, and SPLG might make a more attractive option compared to SPY with their lower expense ratios. Conversely, you might appreciate the higher liquidity of SPY if you're an active or institutional trader. Ultimately, VOO, SPY, IVV, and SPLG are all great options.

The S&P 500 simply reflects the market composition. In the long run, the funds' broad diversification, low turnover, and low fees outweigh these risks.” While the two ETFs follow the same strategy, they earn different ratings. VOO earns a top rating of Gold, while SPY earns the next best rating of Silver.

Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.