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VOO vs. DIA: What’s The Difference?

The Vanguard S&P 500 ETF (VOO) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) are both among the Top 100 ETFs. VOO is a Vanguard Large Blend fund and DIA is a SPDR State Street Global Advisors Large Value fund. So, what’s the difference between VOO and DIA? And which fund is better?

The expense ratio of VOO is 0.13 percentage points lower than DIA’s (0.03% vs. 0.16%). VOO also has a higher exposure to the technology sector and a lower standard deviation. Overall, VOO has provided higher returns than DIA over the past ten years.

In this article, we’ll compare VOO vs. DIA. We’ll look at performance and portfolio growth, as well as at their holdings and industry exposure. Moreover, I’ll also discuss VOO’s and DIA’s fund composition, annual returns, and risk metrics and examine how these affect their overall returns.

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Summary

VOODIA
NameVanguard S&P 500 ETFSPDR Dow Jones Industrial Average ETF Trust
CategoryLarge BlendLarge Value
IssuerVanguardSPDR State Street Global Advisors
AUM753.41B30.46B
Avg. Return14.45%13.35%
Div. Yield1.34%1.61%
Expense Ratio0.03%0.16%

The Vanguard S&P 500 ETF (VOO) is a Large Blend fund that is issued by Vanguard. It currently has 753.41B total assets under management and has yielded an average annual return of 14.45% over the past 10 years. The fund has a dividend yield of 1.34% with an expense ratio of 0.03%.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) is a Large Value fund that is issued by SPDR State Street Global Advisors. It currently has 30.46B total assets under management and has yielded an average annual return of 13.35% over the past 10 years. The fund has a dividend yield of 1.61% with an expense ratio of 0.16%.

VOO’s dividend yield is 0.27% lower than that of DIA (1.34% vs. 1.61%). Also, VOO yielded on average 1.10% more per year over the past decade (14.45% vs. 13.35%). The expense ratio of VOO is 0.13 percentage points lower than DIA’s (0.03% vs. 0.16%).

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Fund Composition

Industry Exposure

VOO vs. DIA - Industry Exposure

VOODIA
Technology24.24%17.32%
Industrials8.86%16.7%
Energy2.84%2.0%
Communication Services11.14%4.42%
Utilities2.43%0.0%
Healthcare13.1%17.92%
Consumer Defensive6.32%6.3%
Real Estate2.58%0.0%
Financial Services14.2%20.68%
Consumer Cyclical12.01%13.44%
Basic Materials2.27%1.21%

The Vanguard S&P 500 ETF (VOO) has the most exposure to the Technology sector at 24.24%. This is followed by Financial Services and Healthcare at 14.2% and 13.1% respectively. Utilities (2.43%), Real Estate (2.58%), and Energy (2.84%) only make up 7.85% of the fund’s total assets.

VOO’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 6.32%, 8.86%, 11.14%, 12.01%, and 13.1%.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) has the most exposure to the Financial Services sector at 20.68%. This is followed by Healthcare and Technology at 17.92% and 17.32% respectively. Utilities (0.0%), Basic Materials (1.21%), and Energy (2.0%) only make up 3.21% of the fund’s total assets.

DIA’s mid-section with moderate exposure is comprised of Communication Services, Consumer Defensive, Consumer Cyclical, Industrials, and Technology stocks at 4.42%, 6.3%, 13.44%, 16.7%, and 17.32%.

VOO is 6.92% more exposed to the Technology sector than DIA (24.24% vs 17.32%). VOO’s exposure to Financial Services and Healthcare stocks is 6.48% lower and 4.82% lower respectively (14.2% vs. 20.68% and 13.1% vs. 17.92%). In total, Utilities, Real Estate, and Energy also make up 5.85% more of the fund’s holdings compared to DIA (7.85% vs. 2.00%).

Holdings

VOO - Holdings

VOO HoldingsWeight
Apple Inc5.92%
Microsoft Corp5.62%
Amazon.com Inc4.06%
Facebook Inc Class A2.29%
Alphabet Inc Class A2.02%
Alphabet Inc Class C1.97%
Tesla Inc1.44%
Berkshire Hathaway Inc Class B1.44%
NVIDIA Corp1.37%
JPMorgan Chase & Co1.3%

VOO’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.92%, 5.62%, 4.06%, 2.29%, and 2.02%.

Alphabet Inc Class C (1.97%), Tesla Inc (1.44%), and Berkshire Hathaway Inc Class B (1.44%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VOO’s holdings at 1.37% and 1.3%.

DIA - Holdings

DIA HoldingsWeight
UnitedHealth Group Inc7.63%
Goldman Sachs Group Inc7.23%
The Home Depot Inc6.07%
Microsoft Corp5.16%
Salesforce.com Inc4.65%
Amgen Inc4.64%
Boeing Co4.56%
Visa Inc Class A4.45%
McDonald’s Corp4.4%
Honeywell International Inc4.18%

DIA’s Top Holdings are UnitedHealth Group Inc, Goldman Sachs Group Inc, The Home Depot Inc, Microsoft Corp, and Salesforce.com Inc at 7.63%, 7.23%, 6.07%, 5.16%, and 4.65%.

Amgen Inc (4.64%), Boeing Co (4.56%), and Visa Inc Class A (4.45%) have a slightly smaller but still significant weight. McDonald’s Corp and Honeywell International Inc are also represented in the DIA’s holdings at 4.4% and 4.18%.

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Performance

Annual Returns

VOO vs. DIA - Annual Returns

YearVOODIA
202018.35%9.63%
201931.46%25.09%
2018-4.42%-3.6%
201721.78%27.97%
201611.93%16.28%
20151.35%0.1%
201413.63%9.88%
201332.33%29.41%
201215.98%10.04%
20112.09%8.21%
20100.0%13.87%

VOO had its best year in 2013 with an annual return of 32.33%. VOO’s worst year over the past decade yielded -4.42% and occurred in 2018. In most years the Vanguard S&P 500 ETF provided moderate returns such as in 2016, 2014, and 2012 where annual returns amounted to 11.93%, 13.63%, and 15.98% respectively.

The year 2013 was the strongest year for DIA, returning 29.41% on an annual basis. The poorest year for DIA in the last ten years was 2018, with a yield of -3.6%. Most years the SPDR Dow Jones Industrial Average ETF Trust has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 9.88%, 10.04%, and 13.87% respectively.

Portfolio Growth

VOO vs. DIA - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
VOO$10,000$36,57514.45%
DIA$10,000$33,34113.35%

A $10,000 investment in VOO would have resulted in a final balance of $36,575. This is a profit of $26,575 over 10 years and amounts to a compound annual growth rate (CAGR) of 14.45%.

With a $10,000 investment in DIA, the end total would have been $33,341. This equates to a $23,341 profit over 10 years and a compound annual growth rate (CAGR) of 13.35%.

VOO’s CAGR is 1.10 percentage points higher than that of DIA and as a result, would have yielded $3,234 more on a $10,000 investment. Thus, VOO outperformed DIA by 1.10% annually.


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