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

> Source: EasyCompare research, https://easycompare.io/research/vo
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VO alone. It places VO (Vanguard Morningstar Mid-Cap 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 VO stands in the market, and of the alternatives worth a closer look.

Period covered: VO's full trading record, from January 2004 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** VO has trailed the market, rising 5.7% over the past 6 months against 9.1% for the S&P 500 and 11.2% for the Nasdaq 100. Even so, it sits 3.8% below its record high, and the S&P 500 is similarly close to its own.
- **Fund or market?:** VO rose 1.6% over the past 3 months, 3.8 points ahead of the US mid-cap equity ETF IJH (iShares Core S&P Mid-Cap ETF), which fell 2.2%. The S&P 500 rose 3.9%. Its similar funds did not move as one over the past 3 months: XMHQ (Invesco S&P MidCap Quality ETF) rose 3.8%, while VXF (Vanguard Extended Market ETF) fell 2.4%.
- **Long term:** Over the past decade, VO returned 11.5% a year against 15.5% a year for the S&P 500 (198% in total against 321%). That said, over the past decade, only XMMO (Invesco S&P MidCap Momentum ETF) and XMHQ (Invesco S&P MidCap Quality ETF) of its similar funds outpaced VO.
- **In a crash:** Across six sell-offs, VO has typically fallen 1.2 times as far as the S&P 500.
- **Diversification:** VO is more of the same, not a cushion: a correlation of 0.92 with the S&P 500 over 5 years and 0.94 with the total US market, more closely than 86% of ETFs with at least $100 million in assets. VO fell in 20 of the 22 months the S&P 500 fell over the past 5 years: it usually fell with it.
- **Better options**
  - **Popular alternatives:** VOE (Vanguard Morningstar Mid-Cap Value ETF) earned more than VO with less volatility over the past 5 years: 9.4% a year at 15.8% volatility, against 6.8% a year at 17.6%.
  - **Nearby categories and themes:** VTV (Vanguard Morningstar Value ETF, US large-cap value) and DIA (State Street SPDR Dow Jones Industrial Average ETF Trust, US large-cap equity) earned more than VO with less volatility over the past 5 years. VTV returned 12.1% a year at 13.7% volatility, against 6.8% a year at 17.6%.
  - **Whole market:** 194 of the 3,633 stocks and funds worth at least $500 million earned more than VO with less volatility over the past 5 years, among them VXUS (Vanguard Total International Stock ETF), VTV (Vanguard Morningstar Value ETF) and IEFA (iShares Core MSCI EAFE ETF).

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

This chart tracks a hypothetical $10,000 investment in VO over the past 22 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VO over the same span and VO's popular alternatives, among those that traded for the entire period.

- $10,000 invested in VO at the end of September 2004 would have grown to $86,371 by September 2026, less than the $102,174 it would have become in SPY, an S&P 500 fund.
- Six of the eight other investments on the chart ended ahead of VO, and RSG finished highest, at $166,817.

## VO 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.

- VO's deepest decline since it began trading in 2004 was 58.9%, from July 2007 to March 2009. It took 23 months from the low to climb back to its old high.
- Over 21 full calendar years, VO's best was 2009, when it returned 40.6%, and its worst was 2008, when it lost 41.6%. It lost money in five of those years.
- VO is 3.8% below its all-time high.

- Type: ETF, Broad Market (Asset Management)
- Trading since: January 30, 2004
- Assets: $217B
- Expense ratio: 0.03%
- Volatility (5 years): 17.6%; Sharpe ratio: 0.47
- Worst decline ever: −58.9%, from July 13, 2007 to March 9, 2009; back at its high by February 8, 2011

| Period | VO total return |
| --- | --- |
| 1 month | +0.8% |
| 3 months | +1.6% |
| 6 months | +5.7% |
| year to date | +11.8% |
| 1 year | +12.4% |
| 3 years | +68.9% |
| 5 years | +39.1% |
| 10 years | +198% |

## VO against the whole market

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

### How does VO rank among all ETFs?

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

- VO lands in the broad middle of the market on every measure here. VO's 10-year return ranks in the top 31% of the 958 ETFs with at least $100 million in assets with 10 years of history.

| Measure | VO | Rank |
| --- | --- | --- |
| 1-year return | +12.4% | 1,058 of 2,485 (top 43%) |
| 3-year return | +68.9% | 804 of 1,949 (top 42%) |
| 5-year return | +39.1% | 869 of 1,560 (top 56%) |
| 10-year return | +198% | 298 of 958 (top 32%) |
| Volatility, 5 years | 17.6% | 916 of 1,560 (top 59%) |
| Sharpe ratio, 5 years | 0.47 | 974 of 1,560 (top 63%) |
| Worst decline, past 10 years | −39.4% | 513 of 951 (top 54%) |

### What has beaten VO 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).

- Two stocks and 192 ETFs worth at least $500 million sit in the green region: each earned more than VO over the past 5 years with smaller price swings. That is 5% of the 3,633 screened.
- Among those with at least half VO's swings, LVHI has the best return for its risk: 17.0% a year at 11.1% volatility, 37% less than VO's 17.6%, and a Sharpe ratio (return above cash per unit of volatility) of 1.48 against 0.47 for VO.
- Among VO's popular alternatives, VOE is in the region. VOE earned 9.4% a year against 6.8% a year for VO, at 15.8% volatility, 10% less than VO's 17.6%.

### Is there a better investment than VO?

The table below lists investments that beat VO 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 VO's popular alternatives, VOE earned more than VO with less volatility over the past 5 years: 9.4% a year at 15.8% volatility, against 6.8% a year at 17.6%.
- Looking beyond its popular alternatives, VTV (US large-cap value) and DIA (US large-cap equity) earned more than VO with less volatility over the past 5 years. VTV returned 12.1% a year at 13.7% volatility, against 6.8% a year at 17.6%.
- Across the whole market, 194 of the 3,633 stocks and funds worth at least $500 million earned more than VO with less volatility over the past 5 years, among them VXUS, VTV and IEFA.

The 15 strongest of 194 investments that beat VO over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with VO | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| VO: Vanguard Morningstar Mid-Cap ETF (this page) |  | +6.8% | 17.6% | 0.47 | −39.4% | +198% |  |  |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | US Dividend Equity | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.94 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [SCHD](https://easycompare.io/research/schd): Schwab U.S. Dividend Equity ETF | US Dividend Equity | +9.7% | 14.3% | 0.72 | −33.4% | +252% | 0.81 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | International Equity | +17.0% | 11.1% | 1.48 | −32.4% | +194% | 0.66 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| EQWL: Invesco S&P 100 Equal Weight ETF | Broad Market | +11.6% | 15.0% | 0.81 | −34.3% | +291% | 0.95 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| RECS: Columbia Research Enhanced Core ETF | US Large-Cap Equity | +13.4% | 16.4% | 0.85 | −34.3% | +237% | 0.92 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| PTNQ: Pacer Trendpilot 100 ETF | Technology | +9.7% | 14.1% | 0.73 | −28.1% | +305% | 0.56 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| EQL: ALPS Equal Sector Weight ETF | Broad Market | +13.5% | 14.5% | 0.94 | −34.2% | +387% | 0.95 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VT](https://easycompare.io/research/vt): Vanguard Total World Stock ETF | Global Equity | +10.3% | 16.2% | 0.69 | −34.2% | +223% | 0.94 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| DFIV: Dimensional - International Value ETF | International Equity | +14.8% | 16.4% | 0.93 | −25.4% | — | 0.74 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| JQUA: JPMorgan U.S. Quality Factor ETF | US Quality Equity | +13.6% | 15.7% | 0.89 | −32.9% | — | 0.93 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| USMC: Principal U.S. Mega-Cap ETF | Broad Market | +14.1% | 16.4% | 0.89 | −30.0% | — | 0.85 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [VTV](https://easycompare.io/research/vtv): Vanguard Morningstar Value ETF | US Large-Cap Value | +12.1% | 13.7% | 0.90 | −36.8% | +235% | 0.91 | Higher return, lower volatility; Higher return in most periods; Smaller losses in recent crashes |
| AVIV: Avantis International Large Cap Value ETF | International | +12.6% | 16.7% | 0.80 | −27.7% | — | 0.78 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| QDPL: Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF | Dividend & Income | +11.8% | 15.0% | 0.82 | −22.6% | — | 0.91 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| FDLO: Fidelity Low Volatility Factor ETF | Broad Market | +9.8% | 13.0% | 0.79 | −34.4% | +249% | 0.87 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## VO against its popular alternatives

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

### How do VO'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.

- Six of the 20 popular alternatives, led by VV, VTI and VOE, were both more rewarding and calmer than VO over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, VO returned 6.8% a year, less than the S&P 500's 12.7%, with higher volatility (17.6% against 17.1%).

### Has VO consistently beaten its popular alternatives?

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

- Five of the 22 popular alternatives, led by VV, VTI and VOE, outperformed VO in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- VV and VTI outperformed VO in every long-term period and in all but one short-term period, the most consistent record in the group.
- VV, VTI and XMMO earned more for the risk they took than VO (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of VO | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| VO: Vanguard Morningstar Mid-Cap ETF (this page) | +12.4% | +68.9% | +39.1% | +198% |  |  | 0.47 |
| [VV](https://easycompare.io/research/vv): Vanguard Morningstar Large-Cap ETF | +15.4% | +90.6% | +78.8% | +324% | 4/5 short-term, 3/3 long-term | all-weather | 0.76 |
| [VTI](https://easycompare.io/research/vti): Vanguard Morningstar Total Stock Market ETF | +15.2% | +87.9% | +72.6% | +302% | 4/5 short-term, 3/3 long-term | all-weather | 0.71 |
| VOE: Vanguard Morningstar Mid-Cap Value ETF | +21.7% | +75.4% | +56.6% | +182% | 5/5 short-term, 2/3 long-term | consistent | 0.65 |
| XMHQ: Invesco S&P MidCap Quality ETF | +11.9% | +59.9% | +58.9% | +240% | 3/5 short-term, 2/3 long-term | consistent | 0.56 |
| IMCB: iShares Morningstar Mid-Cap ETF | +19.2% | +76.6% | +49.3% | +199% | 3/5 short-term, 2/3 long-term | consistent | 0.55 |
| XMMO: Invesco S&P MidCap Momentum ETF | +4.6% | +88.0% | +64.6% | +390% | 0/5 short-term, 3/3 long-term |  | 0.56 |
| [IWR](https://easycompare.io/research/iwr): iShares Russell Mid-Cap ETF | +15.1% | +71.2% | +41.7% | +198% | 2/5 short-term, 2/3 long-term |  | 0.48 |
| BBMC: JPMorgan BetaBuilders U.S. Mid Cap Equity ETF | +18.3% | +77.5% | +41.4% | — | 2/5 short-term, 2/3 long-term |  | 0.44 |
| FLQM: Franklin U.S. Mid Cap Multifactor Index ETF | +10.4% | +53.0% | +42.6% | — | 3/5 short-term, 1/3 long-term |  | 0.52 |
| JHMM: John Hancock Investments - Multifactor Mid Cap ETF | +14.0% | +66.2% | +41.2% | +199% | 1/5 short-term, 1/3 long-term |  | 0.47 |
| SPMD: State Street SPDR Portfolio S&P 400 Mid Cap ETF | +13.5% | +59.5% | +41.6% | +181% | 1/5 short-term, 1/3 long-term |  | 0.46 |
| [IJH](https://easycompare.io/research/ijh): iShares Core S&P Mid-Cap ETF | +13.5% | +59.4% | +41.4% | +178% | 1/5 short-term, 1/3 long-term |  | 0.45 |
| IVOO: Vanguard S&P Mid-Cap 400 ETF | +13.6% | +59.4% | +41.3% | +177% | 1/5 short-term, 1/3 long-term |  | 0.45 |
| EZM: WisdomTree U.S. MidCap Fund | +13.9% | +58.5% | +43.7% | +169% | 1/5 short-term, 1/3 long-term |  | 0.46 |
| DON: WisdomTree U.S. MidCap Dividend Fund | +11.6% | +51.5% | +43.7% | +139% | 1/5 short-term, 1/3 long-term |  | 0.51 |
| FNX: First Trust Mid Cap Core AlphaDEX Fund | +11.2% | +63.4% | +42.6% | +199% | 0/5 short-term, 1/3 long-term |  | 0.45 |
| [VXF](https://easycompare.io/research/vxf): Vanguard Extended Market ETF | +9.9% | +75.1% | +27.2% | +194% | 0/5 short-term, 1/3 long-term |  | 0.33 |
| SCHM: Schwab U.S. Mid-Cap ETF | +17.6% | +67.4% | +38.6% | +182% | 2/5 short-term, 0/3 long-term |  | 0.43 |
| [VB](https://easycompare.io/research/vb): Vanguard Morningstar Small-Cap ETF | +13.7% | +66.8% | +35.2% | +179% | 1/5 short-term, 0/3 long-term |  | 0.40 |
| MDY: State Street SPDR S&P MIDCAP 400 ETF Trust | +13.1% | +58.0% | +39.8% | +172% | 1/5 short-term, 0/3 long-term |  | 0.44 |
| VOT: Vanguard Morningstar Mid-Cap Growth ETF | +0.1% | +58.0% | +19.6% | +201% | 0/5 short-term, 0/3 long-term |  | 0.27 |
| XMLV: Invesco S&P MidCap Low Volatility ETF | +5.8% | +46.1% | +33.1% | +112% | 0/5 short-term, 0/3 long-term |  | 0.47 |

### How did VO do year by year?

This table shows each investment's total return in every full calendar year since 2005, along with where VO ranked among its popular alternatives each year.

- VO finished ahead of the S&P 500 in four of its 21 full calendar years, and behind it in each of the last five.
- Among its popular alternatives, VV came out ahead of VO most often, in 13 of the 21 years both traded.
- Ranked against its popular alternatives each year, VO finished in the top quarter in four of 21 years and in the bottom quarter in three. In 2025, it ranked 6 of 21.

| Year | VO | SPY |
| --- | --- | --- |
| 2025 | +11.6% | +17.7% |
| 2024 | +15.3% | +24.9% |
| 2023 | +16.0% | +26.2% |
| 2022 | −18.8% | −18.2% |
| 2021 | +24.7% | +28.7% |
| 2020 | +18.1% | +18.3% |
| 2019 | +30.9% | +31.2% |
| 2018 | −9.2% | −4.6% |
| 2017 | +19.3% | +21.7% |
| 2016 | +11.2% | +12.0% |

## Risk and diversification

How VO 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 VO's worst declines?

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

- In all five of VO's worst declines, the S&P 500 held up better over the same dates.
- The longest climb back to a previous high took 23 months, after VO fell 58.9% from July 2007 to March 2009.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −58.9% | July 13, 2007 | March 9, 2009 | February 8, 2011 | −54.5% | 2008 financial crisis |
| −39.4% | February 20, 2020 | March 23, 2020 | September 2, 2020 | −33.4% | Covid crash |
| −27.6% | November 16, 2021 | October 14, 2022 | July 16, 2024 | −22.6% | 2022 bear market |
| −24.6% | July 7, 2011 | October 3, 2011 | March 13, 2012 | −18.4% | 2011 euro debt crisis |
| −21.2% | August 29, 2018 | December 24, 2018 | April 5, 2019 | −18.8% | late-2018 sell-off |

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

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

- VO fell further than the S&P 500 in eight of the nine crashes it has traded through. The clearest case was the 2015 China and oil sell-off, when VO fell 18.8% and the S&P 500 fell 12.8%.
- Among its popular alternatives, FLQM held up best, falling less than VO in all five crashes they both traded through.

| Crash | Dates | VO 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 | −58.3% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −2.4% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −23.4% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −18.8% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −5.8% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −21.2% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −39.4% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −25.0% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −5.8% | −3.4% |

### How closely does VO 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.

- XMMO took just 93% of the S&P 500's losses, against 109% for VO, while still keeping 103% of its gains.
- Over the past 10 years, VO captured 91% of the S&P 500's gains in rising months and 109% of its losses in falling months, with a beta of 1.05. Its share of the market's losses was larger than its share of the gains.
- Four of the 18 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than VO's 0.84, led by XMMO, VV and VTI.

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

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| VO: Vanguard Morningstar Mid-Cap ETF (this page) | 91.0% | 109% | 1.05 |
| [VV](https://easycompare.io/research/vv): Vanguard Morningstar Large-Cap ETF | 101% | 101% | 1.01 |
| [VTI](https://easycompare.io/research/vti): Vanguard Morningstar Total Stock Market ETF | 100% | 103% | 1.02 |
| VOE: Vanguard Morningstar Mid-Cap Value ETF | 87.0% | 106% | 0.99 |
| XMHQ: Invesco S&P MidCap Quality ETF | 94.0% | 105% | 1.01 |
| IMCB: iShares Morningstar Mid-Cap ETF | 92.0% | 109% | 1.05 |
| XMMO: Invesco S&P MidCap Momentum ETF | 103% | 93.0% | 1.05 |
| [IWR](https://easycompare.io/research/iwr): iShares Russell Mid-Cap ETF | 93.0% | 111% | 1.06 |
| JHMM: John Hancock Investments - Multifactor Mid Cap ETF | 93.0% | 111% | 1.06 |
| SPMD: State Street SPDR Portfolio S&P 400 Mid Cap ETF | 93.0% | 116% | 1.10 |
| EZM: WisdomTree U.S. MidCap Fund | 96.0% | 124% | 1.16 |
| DON: WisdomTree U.S. MidCap Dividend Fund | 84.0% | 110% | 1.01 |
| FNX: First Trust Mid Cap Core AlphaDEX Fund | 101% | 126% | 1.18 |
| [VXF](https://easycompare.io/research/vxf): Vanguard Extended Market ETF | 100% | 123% | 1.19 |
| SCHM: Schwab U.S. Mid-Cap ETF | 94.0% | 116% | 1.11 |
| [VB](https://easycompare.io/research/vb): Vanguard Morningstar Small-Cap ETF | 96.0% | 120% | 1.13 |
| MDY: State Street SPDR S&P MIDCAP 400 ETF Trust | 92.0% | 115% | 1.09 |
| VOT: Vanguard Morningstar Mid-Cap Growth ETF | 95.0% | 113% | 1.12 |
| XMLV: Invesco S&P MidCap Low Volatility ETF | 65.0% | 80.0% | 0.74 |

### What diversifies VO?

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 VO into DBMF would have cut the portfolio's volatility by 22% over the past 5 years and raised its annual return (+7.4% for VO alone, +8.4% for the mix).
- Among large ETFs, DXJ, GLD and XLE have moved largely independently of VO over the past 5 years, with correlations of 0.49 or lower, and each still earned a positive 5-year return.
- CAH made money in three of the five calendar years in which VO lost money.

| Investment | Correlation with VO | 5Y return | Volatility | Sharpe | Rose in VO's 5 down years |
| --- | --- | --- | --- | --- | --- |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.49 | +225% | 19.1% | 1.34 | 2 of 5 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.20 | +126% | 18.9% | 0.96 | 2 of 5 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.38 | +177% | 25.5% | 0.93 | 2 of 5 |
| DBMF: iMGP DBi Managed Futures Strategy ETF | -0.24 | +59.7% | 12.4% | 0.82 | 1 of 5 |
| DBA: Invesco DB Agriculture Fund | 0.22 | +66.4% | 13.8% | 0.81 | 1 of 5 |
| GDX: VanEck Gold Miners ETF | 0.34 | +181% | 38.2% | 0.73 | 0 of 5 |
| USO: United States Oil Fund, LP | -0.02 | +176% | 37.7% | 0.73 | 1 of 5 |
| FLSP: Franklin Systematic Style Premia ETF | 0.02 | +49.8% | 13.4% | 0.68 | 1 of 5 |

## Common questions

### What was VO's worst drawdown?

VO's deepest decline since it began trading in 2004 was 58.9%, from July 2007 to March 2009. It took 23 months from the low to climb back to its old high. Because VO launched in January 2004, that record does not include the dot-com bust.

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

Over 21 full calendar years, VO's best year was 2009, when it returned 40.6%. Its worst was 2008, with a return of -41.6%.

### Is there a better investment than VO?

Among VO's popular alternatives, VOE earned more than VO with less volatility over the past 5 years: 9.4% a year at 15.8% volatility, against 6.8% a year at 17.6%. Looking beyond its popular alternatives, VTV (US large-cap value) and DIA (US large-cap equity) earned more than VO with less volatility over the past 5 years. VTV returned 12.1% a year at 13.7% volatility, against 6.8% a year at 17.6%.

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

Yes. VO's volatility over the past 5 years was 17.6%, 1.0 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VO's return lands within 17.6% 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 VO's Sharpe ratio?

VO's Sharpe ratio over the past 5 years was 0.47, against 0.79 for the S&P 500, so VO 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 VO with the S&P 500?

Over the past 5 years, VO's monthly returns had a correlation of 0.92 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They move almost in lockstep, so holding both adds little diversification. In the table, the correlation column measures each option against VO instead: the lower it is, the more that option would diversify a VO holding.

### What are the best alternatives to VO?

Of the 22 popular alternatives we compared, five outperformed VO in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: VV, VTI and VOE.

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

VO finished ahead of the S&P 500 (SPY) in four of 21 full calendar years. In 2025, it returned +11.6%, against +17.7% for the index.

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

VO fell less than the S&P 500 (SPY) in one of the nine major crashes it has traded through, and further in eight. The clearest case was the 2015 China and oil sell-off, when VO fell 18.8% and the S&P 500 fell 12.8%.

### What diversifies VO?

These had a low correlation with VO over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.49), GLD (correlation 0.20) and XLE (correlation 0.38); among large stocks, CAH (correlation 0.38), CLS (correlation 0.44) and MCK (correlation 0.28). A correlation near zero means the two have moved largely independently.

## More research

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- [iShares Russell Mid-Cap ETF (IWR) Performance, Alternatives and Market Rank](https://easycompare.io/research/iwr)
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- [Vanguard Extended Market ETF (VXF) Performance, Alternatives and Market Rank](https://easycompare.io/research/vxf)
- [Vanguard Morningstar Small-Cap ETF (VB) Performance, Alternatives and Market Rank](https://easycompare.io/research/vb)
- [Schwab U.S. Dividend Equity ETF (SCHD) Performance, Alternatives and Market Rank](https://easycompare.io/research/schd)
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- [Amazon.com (AMZN) Performance, Alternatives and Market Rank](https://easycompare.io/research/amzn)

## Explore further

- Full page with charts: https://easycompare.io/research/vo
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against VO live: https://betterthanspy.com/?b=VO&utm_source=easycompare&utm_medium=research