VOO vs. VV: What’s The Difference?

The Vanguard S&P 500 ETF (VOO) and the Vanguard Large-Cap Index Fund ETF Shares (VV) are both among the Top 100 ETFs. VOO is a Vanguard Large Blend fund and VV is a Vanguard Large Blend fund. So, what’s the difference between VOO and VV? And which fund is better?

The expense ratio of VOO is 0.01 percentage points lower than VV’s (0.03% vs. 0.04%). VOO also has a lower exposure to the technology sector and a lower standard deviation. Overall, VOO has provided lower returns than VV over the past ten years.

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

Summary

VOO VV
Name Vanguard S&P 500 ETF Vanguard Large-Cap Index Fund ETF Shares
Category Large Blend Large Blend
Issuer Vanguard Vanguard
AUM 753.41B 37.65B
Avg. Return 14.45% 14.75%
Div. Yield 1.34% 1.26%
Expense Ratio 0.03% 0.04%

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 Vanguard Large-Cap Index Fund ETF Shares (VV) is a Large Blend fund that is issued by Vanguard. It currently has 37.65B total assets under management and has yielded an average annual return of 14.75% over the past 10 years. The fund has a dividend yield of 1.26% with an expense ratio of 0.04%.

VOO’s dividend yield is 0.08% higher than that of VV (1.34% vs. 1.26%). Also, VOO yielded on average 0.30% less per year over the past decade (14.45% vs. 14.75%). The expense ratio of VOO is 0.01 percentage points lower than VV’s (0.03% vs. 0.04%).

Fund Composition

Industry Exposure

VOO vs. VV - Industry Exposure

VOO VV
Technology 24.24% 25.38%
Industrials 8.86% 8.39%
Energy 2.84% 2.62%
Communication Services 11.14% 11.68%
Utilities 2.43% 2.35%
Healthcare 13.1% 13.22%
Consumer Defensive 6.32% 6.06%
Real Estate 2.58% 2.7%
Financial Services 14.2% 13.82%
Consumer Cyclical 12.01% 11.65%
Basic Materials 2.27% 2.13%

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 Vanguard Large-Cap Index Fund ETF Shares (VV) has the most exposure to the Technology sector at 25.38%. This is followed by Financial Services and Healthcare at 13.82% and 13.22% respectively. Utilities (2.35%), Energy (2.62%), and Real Estate (2.7%) only make up 7.67% of the fund’s total assets.

VV’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Consumer Cyclical, Communication Services, and Healthcare stocks at 6.06%, 8.39%, 11.65%, 11.68%, and 13.22%.

VOO is 1.14% less exposed to the Technology sector than VV (24.24% vs 25.38%). VOO’s exposure to Financial Services and Healthcare stocks is 0.38% higher and 0.12% lower respectively (14.2% vs. 13.82% and 13.1% vs. 13.22%). In total, Utilities, Real Estate, and Energy also make up 0.18% more of the fund’s holdings compared to VV (7.85% vs. 7.67%).

Holdings

VOO - Holdings

VOO Holdings Weight
Apple Inc 5.92%
Microsoft Corp 5.62%
Amazon.com Inc 4.06%
Facebook Inc Class A 2.29%
Alphabet Inc Class A 2.02%
Alphabet Inc Class C 1.97%
Tesla Inc 1.44%
Berkshire Hathaway Inc Class B 1.44%
NVIDIA Corp 1.37%
JPMorgan Chase & Co 1.3%

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%.

VV - Holdings

VV Holdings Weight
Apple Inc 5.7%
Microsoft Corp 5.35%
Amazon.com Inc 3.87%
Facebook Inc Class A 2.19%
Alphabet Inc Class A 1.93%
Alphabet Inc Class C 1.81%
Tesla Inc 1.37%
Berkshire Hathaway Inc Class B 1.3%
NVIDIA Corp 1.24%
JPMorgan Chase & Co 1.24%

VV’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.7%, 5.35%, 3.87%, 2.19%, and 1.93%.

Alphabet Inc Class C (1.81%), Tesla Inc (1.37%), and Berkshire Hathaway Inc Class B (1.3%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VV’s holdings at 1.24% and 1.24%.

Performance

Annual Returns

VOO vs. VV - Annual Returns

Year VOO VV
2020 18.35% 20.99%
2019 31.46% 31.39%
2018 -4.42% -4.44%
2017 21.78% 22.03%
2016 11.93% 11.65%
2015 1.35% 1.07%
2014 13.63% 13.39%
2013 32.33% 32.65%
2012 15.98% 16.09%
2011 2.09% 1.58%
2010 0.0% 15.81%

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 VV, returning 32.65% on an annual basis. The poorest year for VV in the last ten years was 2018, with a yield of -4.44%. Most years the Vanguard Large-Cap Index Fund ETF Shares has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 13.39%, 15.81%, and 16.09% respectively.

Portfolio Growth

VOO vs. VV - Portfolio Growth

Fund Initial Balance Final Balance CAGR
VOO $10,000 $36,575 14.45%
VV $10,000 $37,103 14.75%

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 VV, the end total would have been $37,103. This equates to a $27,103 profit over 10 years and a compound annual growth rate (CAGR) of 14.75%.

VOO’s CAGR is 0.30 percentage points lower than that of VV and as a result, would have yielded $528 less on a $10,000 investment. Thus, VOO performed worse than VV by 0.30% annually.


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