# How Vanguard Morningstar Mid-Cap Value ETF (VOE) compares with the whole market and its popular alternatives

> Source: BetterThanSPY research, https://betterthanspy.com/research/voe
> Data as of November 2, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

## The short answer

- **Returns:** +10.0% a year over the past 5 years, against +11.7% for the S&P 500. $10,000 grew to $29,600 over 10 years, against $42,000 in SPY.
- **Risk:** Calmer than the S&P 500: volatility 15.8% against 17.2%; worst decline in 10 years −43.2% against −33.7%.
- **Better options:** 3 of its 23 popular alternatives earned more with less volatility over the past 5 years, including VTV and VYM.
- **Track record:** VOE beat the S&P 500 in 6 of 19 full calendar years, and fell less than it in 2 of 9 major crashes.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VOE alone. It places VOE (Vanguard Morningstar Mid-Cap Value ETF) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VOE stands in the market, and of the alternatives worth a closer look.

Period covered: VOE's full trading record, from August 2006 through October 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of November 2, 2026.

## Key findings

- **What you're buying:** A correlation of 0.96 with VTV (Vanguard Morningstar Value ETF) over 5 years: effectively the same bet as the larger fund.
- **Right now:** Over the past 6 months, VOE rose 11.2%, ahead of 93% of the ETFs with at least $100 million in assets. Both VOE and the S&P 500 are within a few percent of a record high.
- **Fund or market?:** A move of its own: VOE rose 3.8% over the past 3 months, while the S&P 500 fell 0.5%. Last month cut against the tape: VOE rose 7.2% while the S&P 500 fell 2.3%.
- **Long term:** VOE turned $10,000 into $29,600 over the past decade, against $42,000 in the S&P 500.
- **In a crash:** VOE fell harder than the S&P 500 in five of six sell-offs. The 2022 bear market was the exception: VOE fell 19.7%, less than the S&P 500's 24.5%.
- **Diversification:** VOE is some diversification, but not a hedge: a correlation of 0.79 with the S&P 500 over 5 years and 0.81 with the total US market, more closely than 62% of ETFs with at least $100 million in assets. When the S&P 500 had a down month, VOE usually fell with it (19 of 23 months).
- **Better options:** Few investments have done better on both counts: only 43 of the 3,627 stocks and funds worth at least $500 million earned more than VOE with less volatility over the past 5 years, among them VTV (Vanguard Morningstar Value ETF), VYM (Vanguard High Dividend Yield ETF) and IWD (iShares Russell 1000 Value ETF).

## How much would $10,000 in VOE have grown?

This chart tracks a hypothetical $10,000 investment in VOE over the past 20 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VOE over the same span and VOE's popular alternatives, among those that traded for the entire period.

- $10,000 invested in VOE at the end of October 2006 would have grown to $59,228 by October 2026, less than the $79,058 it would have become in SPY, an S&P 500 fund.
- Six of the eight other investments on the chart ended ahead of VOE, and RFV finished highest, at $62,785.

## VOE at a glance

This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- VOE's deepest decline since it began trading in 2006 was 61.6%, from June 2007 to March 2009. It took 25 months from the low to climb back to its old high.
- VOE is trading within 1% of its all-time high.
- Over 19 full calendar years, VOE's best was 2009, when it returned 38.2%, and its worst was 2008, when it lost 36.6%. It lost money in six of those years.

- Type: ETF, Broad Market (Asset Management)
- Trading since: August 25, 2006
- Assets: $37B
- Expense ratio: 0.05%
- Volatility (5 years): 15.8%; Sharpe ratio: 0.69
- Worst decline ever: −61.6%, from June 4, 2007 to March 9, 2009; back at its high by April 27, 2011

| Period | VOE total return |
| --- | --- |
| 1 month | +7.2% |
| 3 months | +3.8% |
| 6 months | +11.2% |
| year to date | +20.4% |
| 1 year | +26.0% |
| 3 years | +74.9% |
| 5 years | +60.9% |
| 10 years | +196% |

## VOE against the whole market

Where VOE ranks among every stock and fund, and what across the market has done better.

### How does VOE rank among all ETFs?

This section ranks VOE on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history.

- VOE's 1-year return ranks in the top 9% of the 2,491 ETFs with at least $100 million in assets with 1 year of history.

| Measure | VOE | Rank |
| --- | --- | --- |
| 1-year return | +26.0% | 220 of 2,491 (top 9%) |
| 3-year return | +74.9% | 564 of 1,956 (top 29%) |
| 5-year return | +60.9% | 469 of 1,560 (top 31%) |
| 10-year return | +196% | 325 of 956 (top 34%) |
| Volatility, 5 years | 15.8% | 676 of 1,560 (top 44%) |
| Sharpe ratio, 5 years | 0.69 | 524 of 1,560 (top 34%) |
| Worst decline, past 10 years | −43.2% | 652 of 952 (top 69%) |

### What has beaten VOE on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 43 ETFs worth at least $500 million sit in the green region: each earned more than VOE over the past 5 years with smaller price swings. That is 1% of the 3,627 screened. Few investments beat it on both counts.
- Among those with at least half VOE's swings, LVHI has the best return for its risk: 17.0% a year at 11.1% volatility, 30% less than VOE's 15.8%, and a Sharpe ratio (return above cash per unit of volatility) of 1.48 against 0.69 for VOE.
- Among VOE's popular alternatives, VTV, VYM and IVE are in the region. VTV earned 12.3% a year against 10.0% a year for VOE, at 13.7% volatility, 13% less than VOE's 15.8%.

### Is there a better investment than VOE?

The table below lists investments that beat VOE over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio.

- Among VOE's popular alternatives, VTV and VYM earned more than VOE with less volatility over the past 5 years. VTV returned 12.3% a year at 13.7% volatility, against 10.0% a year at 15.8%.
- Looking beyond its popular alternatives, IWX (US large-cap value) and PWV (US large-cap value) earned more than VOE with less volatility over the past 5 years. IWX returned 12.6% a year at 13.8% volatility, against 10.0% a year at 15.8%.
- Few investments have done better on both counts: only 43 of the 3,627 stocks and funds worth at least $500 million earned more than VOE with less volatility over the past 5 years, among them VTV, VYM and IWD.

The 15 strongest of 43 investments that beat VOE over the past 5 years, out of 3,627 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with VOE | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| VOE: Vanguard Morningstar Mid-Cap Value ETF (this page) |  | +10.0% | 15.8% | 0.69 | −43.2% | +196% |  |  |
| IWX: iShares Russell Top 200 Value ETF | US Large-Cap Value | +12.6% | 13.8% | 0.93 | −35.8% | +226% | 0.93 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| PWV: Invesco Large Cap Value ETF | US Large-Cap Value | +13.6% | 14.2% | 0.98 | −37.6% | +230% | 0.94 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| IUS: Invesco RAFI Strategic US ETF | US Total Market | +14.3% | 14.9% | 0.97 | −34.7% | — | 0.92 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| DJD: Invesco Dow Jones Industrial Average Dividend ETF | High Dividend Yield | +12.3% | 13.4% | 0.94 | −34.7% | +235% | 0.91 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FDL: First Trust Morningstar Dividend Leaders Index Fund | High Dividend Yield | +14.8% | 14.5% | 1.03 | −41.4% | +216% | 0.88 | Higher return, lower volatility; Higher return in most periods; Smaller losses in recent crashes |
| [VTV](https://betterthanspy.com/research/vtv): Vanguard Morningstar Value ETF | US Large-Cap Value | +12.3% | 13.7% | 0.92 | −36.8% | +245% | 0.96 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| [VYM](https://betterthanspy.com/research/vym): Vanguard High Dividend Yield ETF | High Dividend Yield | +11.6% | 13.8% | 0.87 | −35.2% | +216% | 0.95 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| DGRW: WisdomTree U.S. Quality Dividend Growth Fund | US Dividend Equity | +11.2% | 14.0% | 0.83 | −32.0% | +280% | 0.88 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| RWL: Invesco S&P 500 Revenue ETF | US Large-Cap Equity | +13.5% | 14.4% | 0.96 | −36.1% | +296% | 0.95 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | International Dividend Equity | +17.0% | 11.1% | 1.48 | −32.4% | +204% | 0.80 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| EQL: ALPS Equal Sector Weight ETF | US Large-Cap Equity | +13.1% | 14.5% | 0.92 | −34.2% | +396% | 0.94 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | International Equity | +12.8% | 13.8% | 0.94 | −32.5% | +215% | 0.79 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| HDV: iShares Core High Dividend ETF | High Dividend Yield | +13.4% | 13.0% | 1.03 | −37.0% | +184% | 0.84 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| GCOW: Pacer Global Cash Cows Dividend ETF | Global Equity | +14.5% | 13.6% | 1.07 | −37.6% | +175% | 0.79 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| HDEF: Xtrackers MSCI EAFE High Dividend Yield Equity ETF | International Dividend Equity | +13.0% | 14.2% | 0.94 | −36.4% | +137% | 0.78 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |

## VOE against its popular alternatives

The investments people most often weigh against VOE, compared period by period and year by year.

### How do VOE's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- VTV, VYM and IVE were both more rewarding and calmer than VOE over the past 5 years, earning a higher annual return with lower volatility.
- 13 of the 20 popular alternatives earned less than VOE over the past 5 years while swinging more, the weaker corner of the map.
- Over the past 5 years, VOE returned 10.0% a year, less than the S&P 500's 11.7%, with lower volatility (15.8% against 17.2%).

### Has VOE consistently beaten its popular alternatives?

This section compares VOE with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Only one of the 23 popular alternatives, IMCV, outperformed VOE in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- VTV, VYM and VFMV earned more for the risk they took than VOE (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.
- VTV outperformed VOE over all three long-term periods but in only one of the five short-term ones, so VOE has had the better of it lately.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of VOE | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| VOE: Vanguard Morningstar Mid-Cap Value ETF (this page) | +26.0% | +74.9% | +60.9% | +196% |  |  | 0.69 |
| IMCV: iShares Morningstar Mid-Cap Value ETF | +28.0% | +78.2% | +66.8% | +192% | 5/5 short-term, 2/3 long-term | consistent | 0.71 |
| [VTV](https://betterthanspy.com/research/vtv): Vanguard Morningstar Value ETF | +26.2% | +77.9% | +78.7% | +245% | 1/5 short-term, 3/3 long-term |  | 0.92 |
| RFV: Invesco S&P MidCap 400 Pure Value ETF | +20.1% | +62.3% | +69.7% | +235% | 0/5 short-term, 2/3 long-term |  | 0.60 |
| [IVE](https://betterthanspy.com/research/ive): iShares S&P 500 Value ETF | +16.9% | +63.0% | +71.8% | +220% | 0/5 short-term, 2/3 long-term |  | 0.84 |
| [VYM](https://betterthanspy.com/research/vym): Vanguard High Dividend Yield ETF | +20.1% | +72.7% | +73.0% | +216% | 0/5 short-term, 2/3 long-term |  | 0.87 |
| [VO](https://betterthanspy.com/research/vo): Vanguard Morningstar Mid-Cap ETF | +14.3% | +67.9% | +38.5% | +209% | 0/5 short-term, 1/3 long-term |  | 0.46 |
| [IWR](https://betterthanspy.com/research/iwr): iShares Russell Mid-Cap ETF | +16.9% | +69.7% | +41.0% | +209% | 0/5 short-term, 1/3 long-term |  | 0.47 |
| VOT: Vanguard Morningstar Mid-Cap Growth ETF | −1.0% | +55.5% | +14.7% | +206% | 0/5 short-term, 1/3 long-term |  | 0.23 |
| IWS: iShares Russell Mid-Cap Value ETF | +25.8% | +75.7% | +54.0% | +182% | 1/5 short-term, 0/3 long-term |  | 0.59 |
| FNK: First Trust Mid Cap Value AlphaDEX Fund | +24.0% | +55.7% | +51.1% | +167% | 1/5 short-term, 0/3 long-term |  | 0.50 |
| SCHM: Schwab U.S. Mid-Cap ETF | +20.8% | +68.0% | +38.7% | +195% | 0/5 short-term, 0/3 long-term |  | 0.43 |
| [VB](https://betterthanspy.com/research/vb): Vanguard Morningstar Small-Cap ETF | +16.2% | +66.3% | +34.1% | +195% | 0/5 short-term, 0/3 long-term |  | 0.39 |
| [IJH](https://betterthanspy.com/research/ijh): iShares Core S&P Mid-Cap ETF | +15.4% | +58.6% | +39.3% | +190% | 0/5 short-term, 0/3 long-term |  | 0.44 |
| IVOO: Vanguard S&P Mid-Cap 400 ETF | +15.3% | +58.4% | +39.1% | +189% | 0/5 short-term, 0/3 long-term |  | 0.44 |
| [VBR](https://betterthanspy.com/research/vbr): Vanguard Morningstar Small-Cap Value ETF | +21.8% | +67.4% | +51.0% | +188% | 0/5 short-term, 0/3 long-term |  | 0.52 |
| MDY: State Street SPDR S&P MIDCAP 400 ETF Trust | +15.0% | +57.1% | +37.6% | +184% | 0/5 short-term, 0/3 long-term |  | 0.42 |
| IVOV: Vanguard S&P Mid-Cap 400 Value ETF | +17.1% | +59.3% | +46.3% | +179% | 0/5 short-term, 0/3 long-term |  | 0.50 |
| MDYV: State Street SPDR S&P 400 Mid Cap Value ETF | +16.9% | +59.0% | +46.1% | +178% | 0/5 short-term, 0/3 long-term |  | 0.49 |
| IJJ: iShares S&P Mid-Cap 400 Value ETF | +16.9% | +58.9% | +46.0% | +177% | 0/5 short-term, 0/3 long-term |  | 0.49 |
| IJS: iShares S&P Small-Cap 600 Value ETF | +23.3% | +62.5% | +37.1% | +168% | 0/5 short-term, 0/3 long-term |  | 0.40 |
| DON: WisdomTree U.S. MidCap Dividend Fund | +17.0% | +52.0% | +47.4% | +156% | 0/5 short-term, 0/3 long-term |  | 0.54 |
| XMLV: Invesco S&P MidCap Low Volatility ETF | +12.1% | +47.4% | +36.2% | +125% | 0/5 short-term, 0/3 long-term |  | 0.50 |
| VFMV: Vanguard U.S. Minimum Volatility ETF | +17.1% | +59.3% | +59.0% | — | 0/5 short-term, 0/3 long-term |  | 0.85 |

### How did VOE do year by year?

This table shows each investment's total return in every full calendar year since 2007, along with where VOE ranked among its popular alternatives each year.

- VOE finished ahead of the S&P 500 in six of its 19 full calendar years, and behind it in each of the last three.
- Among its popular alternatives, VO came out ahead of VOE most often, in ten of the 19 years both traded.
- Ranked against its popular alternatives each year, VOE finished in the top quarter in five of 19 years and in the bottom quarter in three. In 2025, it ranked 5 of 21.

| Year | VOE | SPY |
| --- | --- | --- |
| 2025 | +12.1% | +17.7% |
| 2024 | +14.0% | +24.9% |
| 2023 | +9.8% | +26.2% |
| 2022 | −8.0% | −18.2% |
| 2021 | +28.8% | +28.7% |
| 2020 | +2.6% | +18.3% |
| 2019 | +27.9% | +31.2% |
| 2018 | −12.5% | −4.6% |
| 2017 | +17.1% | +21.7% |
| 2016 | +15.4% | +12.0% |

## Risk and diversification

How VOE has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were VOE's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all five of VOE's worst declines, the S&P 500 held up better over the same dates.
- The slowest recovery came after VOE fell 61.6% from June 2007 to March 2009; it did not regain that peak until April 2011, two years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −61.6% | June 4, 2007 | March 9, 2009 | April 27, 2011 | −54.1% | 2008 financial crisis |
| −43.2% | February 12, 2020 | March 23, 2020 | December 4, 2020 | −33.5% | Covid crash |
| −24.1% | April 29, 2011 | October 3, 2011 | March 13, 2012 | −18.6% | 2011 euro debt crisis |
| −21.5% | January 26, 2018 | December 24, 2018 | July 24, 2019 | −16.7% | late-2018 sell-off |
| −19.7% | April 20, 2022 | September 30, 2022 | February 22, 2024 | −19.0% | 2022 bear market |

### How did VOE do in stock market crashes?

This section measures how far VOE, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- VOE fell further than the S&P 500 in seven of the nine crashes it has traded through. The clearest case was the Covid crash, when VOE fell 43.0% and the S&P 500 fell 33.7%.
- Among its popular alternatives, VFMV held up best, falling less than VOE in all four crashes they both traded through.

| Crash | Dates | VOE fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −59.4% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −2.0% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −21.7% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −16.9% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −5.6% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −21.0% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −43.0% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −19.7% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −6.3% | −3.4% |

### How closely does VOE move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Only VTV, VYM and IVE had a higher capture ratio (upside capture divided by downside capture) than VOE's 0.87, out of 19 popular alternatives with the same record.
- VYM took just 84% of the S&P 500's losses, against 100% for VOE, while still keeping 81% of its gains.
- Over the past 10 years, VOE captured 87% of the S&P 500's gains in rising months and 100% of its losses in falling months, with a beta of 0.98. Its share of the market's losses was larger than its share of the gains.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| VOE: Vanguard Morningstar Mid-Cap Value ETF (this page) | 87.0% | 100% | 0.98 |
| IMCV: iShares Morningstar Mid-Cap Value ETF | 89.0% | 104% | 1.01 |
| [VTV](https://betterthanspy.com/research/vtv): Vanguard Morningstar Value ETF | 86.0% | 87.0% | 0.85 |
| RFV: Invesco S&P MidCap 400 Pure Value ETF | 113% | 140% | 1.33 |
| [IVE](https://betterthanspy.com/research/ive): iShares S&P 500 Value ETF | 88.0% | 96.0% | 0.91 |
| [VYM](https://betterthanspy.com/research/vym): Vanguard High Dividend Yield ETF | 81.0% | 84.0% | 0.81 |
| [VO](https://betterthanspy.com/research/vo): Vanguard Morningstar Mid-Cap ETF | 91.0% | 105% | 1.04 |
| [IWR](https://betterthanspy.com/research/iwr): iShares Russell Mid-Cap ETF | 93.0% | 107% | 1.06 |
| VOT: Vanguard Morningstar Mid-Cap Growth ETF | 95.0% | 112% | 1.12 |
| IWS: iShares Russell Mid-Cap Value ETF | 90.0% | 108% | 1.04 |
| FNK: First Trust Mid Cap Value AlphaDEX Fund | 99.0% | 130% | 1.19 |
| SCHM: Schwab U.S. Mid-Cap ETF | 94.0% | 113% | 1.11 |
| [VB](https://betterthanspy.com/research/vb): Vanguard Morningstar Small-Cap ETF | 96.0% | 117% | 1.12 |
| [IJH](https://betterthanspy.com/research/ijh): iShares Core S&P Mid-Cap ETF | 93.0% | 113% | 1.09 |
| [VBR](https://betterthanspy.com/research/vbr): Vanguard Morningstar Small-Cap Value ETF | 94.0% | 115% | 1.10 |
| MDY: State Street SPDR S&P MIDCAP 400 ETF Trust | 92.0% | 113% | 1.09 |
| IVOV: Vanguard S&P Mid-Cap 400 Value ETF | 94.0% | 118% | 1.12 |
| IJS: iShares S&P Small-Cap 600 Value ETF | 96.0% | 124% | 1.15 |
| DON: WisdomTree U.S. MidCap Dividend Fund | 84.0% | 105% | 1.00 |
| XMLV: Invesco S&P MidCap Low Volatility ETF | 65.0% | 76.0% | 0.74 |

### What diversifies VOE?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in VOE into DBMF would have cut the portfolio's volatility by 22% over the past 5 years and raised its annual return (+10.1% for VOE alone, +10.4% for the mix).
- Among large ETFs, DXJ, GLD and SMH have moved largely independently of VOE over the past 5 years, with correlations of 0.45 or lower, and each still earned a positive 5-year return.
- FIX made money in four of the six calendar years in which VOE lost money.

| Investment | Correlation with VOE | 5Y return | Volatility | Sharpe | Rose in VOE's 6 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.45 | +220% | 19.1% | 1.32 | 2 of 6 |
| [GLD](https://betterthanspy.com/research/gld): SPDR Gold Shares | 0.20 | +116% | 19.1% | 0.91 | 3 of 6 |
| [SMH](https://betterthanspy.com/research/smh): VanEck Semiconductor ETF | 0.42 | +274% | 37.2% | 0.90 | 2 of 6 |
| EWT: iShares MSCI Taiwan ETF | 0.43 | +134% | 24.4% | 0.82 | 1 of 6 |
| DBMF: iMGP DBi Managed Futures Strategy ETF | -0.21 | +53.5% | 12.4% | 0.76 | 1 of 6 |
| USO: United States Oil Fund, LP | 0.11 | +173% | 37.9% | 0.72 | 2 of 6 |
| [VGT](https://betterthanspy.com/research/vgt): Vanguard Information Technology ETF | 0.49 | +115% | 26.2% | 0.72 | 4 of 6 |
| DBA: Invesco DB Agriculture Fund | 0.25 | +56.1% | 13.8% | 0.72 | 1 of 6 |

## Common questions

### What was VOE's worst drawdown?

VOE's deepest decline since it began trading in 2006 was 61.6%, from June 2007 to March 2009. It took 25 months from the low to climb back to its old high. Because VOE launched in August 2006, that record does not include the dot-com bust.

### What were VOE's best and worst years?

Over 19 full calendar years, VOE's best year was 2009, when it returned 38.2%. Its worst was 2008, with a return of -36.6%.

### Is there a better investment than VOE?

Among VOE's popular alternatives, VTV and VYM earned more than VOE with less volatility over the past 5 years. VTV returned 12.3% a year at 13.7% volatility, against 10.0% a year at 15.8%. Looking beyond its popular alternatives, IWX (US large-cap value) and PWV (US large-cap value) earned more than VOE with less volatility over the past 5 years. IWX returned 12.6% a year at 13.8% volatility, against 10.0% a year at 15.8%.

### Is VOE more volatile than the S&P 500?

No. VOE's volatility over the past 5 years was 15.8%, 92% of the S&P 500's 17.2%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VOE's return lands within 15.8% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is VOE's Sharpe ratio?

VOE's Sharpe ratio over the past 5 years was 0.69, against 0.73 for the S&P 500, so VOE earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is VOE with the S&P 500?

Over the past 5 years, VOE's monthly returns had a correlation of 0.79 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against VOE instead: the lower it is, the more that option would diversify a VOE holding.

### What are the best alternatives to VOE?

Of the 23 popular alternatives we compared, one outperformed VOE in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: IMCV.

### Did VOE outperform the S&P 500?

VOE finished ahead of the S&P 500 (SPY) in six of 19 full calendar years. In 2025, it returned +12.1%, against +17.7% for the index.

### How did VOE do in stock market crashes?

VOE fell less than the S&P 500 (SPY) in two of the nine major crashes it has traded through, and further in seven. The clearest case was the Covid crash, when VOE fell 43.0% and the S&P 500 fell 33.7%.

### What diversifies VOE?

These had a low correlation with VOE over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.45), GLD (correlation 0.20) and SMH (correlation 0.42); among large stocks, CAH (correlation 0.43), MPC (correlation 0.43) and MCK (correlation 0.37). A correlation near zero means the two have moved largely independently.

## More research

- [Is VTV Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/vtv)
- [Is IVE Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/ive)
- [Is VYM Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/vym)
- [Is VO Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/vo)
- [Is IWR Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/iwr)
- [Is VB Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/vb)
- [Is IJH Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/ijh)
- [Is VBR Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/vbr)
- [Is SCHD Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/schd)
- [Is AAPL Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/aapl)
- [Is NVDA Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/nvda)
- [Is MSFT Better Than the S&P 500 and the Rest of the Market?](https://betterthanspy.com/research/msft)

## Explore further

- Full page with charts: https://betterthanspy.com/research/voe
- All research pages: https://betterthanspy.com/llms.txt
- Compare the entire market against VOE live: https://betterthanspy.com/?b=VOE