What distinguishes a small-cap value fund from a large-cap blend fund?

A small-cap value fund, like VIOV, targets companies with lower market capitalisations that appear undervalued relative to their fundamentals. Conversely, a large-cap blend fund, such as VOO, invests in established giant companies across the spectrum of value and growth styles. VIOV focuses on smaller firms with a value tilt, offering exposure to a specific market segment, while VOO tracks the broader US market with the largest companies. Understanding this distinction helps investors grasp how each ETF addresses different segments of the equity market.

How do expense ratios work and why do they differ between these two ETFs?

Expense ratios are annual fees deducted from a fund's assets to cover operating costs. In this comparison, VOO has a lower expense ratio of 0.03%, reflecting the economies of scale available to massive funds tracking widely held indices. VIOV has an expense ratio of 0.10%, which is still competitive but higher than VOO due to its smaller asset base and specialised index tracking. These fees directly impact net returns over time, making cost a key consideration when comparing ETFs like VIOV and VOO.

What is index tracking and what data is available for these funds?

Index tracking refers to an ETF replicating the components and weights of a specific market index. However, for both VIOV and VOO, the specific index tracked is listed as not available in the provided data. While VOO is known for tracking the S&P 500 and VIOV tracks the S&P Small-Cap 600 Value Index based on its names, this specific tracking methodology data is unavailable in the source context. Investors should consult official fund documentation for precise index details when this data is not explicitly provided.

How significant is the top holdings overlap between VIOV and VOO?

The top holdings overlap between these two ETFs is nil. VIOV's top positions include companies like PAYC and MTCH, whereas VOO's largest holdings are dominated by tech giants such as NVDA and AAPL. None of the top ten stocks are shared between the two funds. This lack of overlap indicates that combining these funds would provide exposure to entirely different sets of companies, reflecting their distinct market cap focuses and potential for diversification across large and small-cap segments of the US equity market.

Why is VOO's dividend yield lower than VIOV's?

VOO currently reports a dividend yield of 1.03%, while VIOV reports a higher yield of 1.73%. This difference often stems from the underlying companies' payout policies. Large-cap growth companies in VOO may reinvest earnings rather than distribute high dividends, whereas value-oriented small-cap companies in VIOV tend to have more mature cash flows or specific valuation characteristics that support higher relative payouts. Investors seeking income might look at VIOV, while those prioritising total return often consider VOO, despite the yield discrepancy.

How does concentration risk differ between VOO and VIOV?

VOO exhibits higher concentration risk at the top of its portfolio. Its largest holding, NVDA, accounts for 8.08%, and AAPL for 7.03%, meaning the top ten positions hold significant weight. In contrast, VIOV is more diversified; its largest position, PAYC, is only 1.07%. This difference means VOO's performance can be heavily influenced by the movement of a few mega-cap stocks. VIOV offers broader dispersion across many smaller firms, potentially reducing single-stock impact, though small-cap exposure carries its own unique risks.

What investing goals are typically associated with each fund?

VIOV, being a small-cap value ETF, is typically associated with investors seeking diversification beyond large caps and targeting potentially higher yield income within the value segment. It suits those willing to accept higher volatility for specific factor exposure. VOO is commonly used for core portfolio holdings aiming at broad market participation, long-term growth, and capturing the performance of the US's largest companies. VOO is often chosen for its low cost and simplicity as a total market proxy, whereas VIOV serves a complementary satellite role.

How does liquidity compare given the differences in net assets?

Liquidity is largely driven by scale. VOO holds $1.08 trillion in net assets, which typically ensures very high liquidity and tight bid-ask spreads for traders. VIOV has $1.8 billion in net assets, significantly smaller than VOO. While still liquid, the smaller asset base means trading volumes are lower. For long-term investors, this difference may be negligible. However, for those trading large blocks or entering frequently, VOO's massive scale offers more assured execution prices compared to VIOV's more niche small-cap value focus.

What are the implications of sector weight data being unavailable?

For both VIOV and VOO, sector weight data is currently listed as not available in the provided context. This absence prevents immediate analysis of diversification across industries like technology, healthcare, or financials. Investors often rely on sector weights to ensure they are not overly exposed to one industry risk. Without this data, one must assume the funds follow their respective index rules strictly. To assess sector allocation, investors should consult the fund issuer's official website or prospectus for up-to-date sector distribution details.

How does the fund history and inception date compare for these ETFs?

Both VIOV and VOO share the same inception date of 7 September 2010. This identical launch timeline means both funds have over a decade of performance history available for comparison. While their strategies differ significantly—one focusing on small-cap value and the other on large-cap blend—having matching operational ages allows investors to assess their relative performance over the exact same market cycles. This historical consistency provides a common ground for evaluating how each strategy has weathered various economic conditions.

What should beginners know about interpreting this ETF comparison?

Beginners should view these comparisons as tools for understanding risk and return characteristics rather than predictions of future performance. Note that while VOO offers lower fees and higher liquidity, VIOV provides different exposure and higher yield. Always verify figures such as the 'not available' index or sector data with official sources. Remember that expense ratios, yields, and holdings are snapshots. Past performance, like that seen since the 2010 inception, does not guarantee future results. Use this data to align choices with your own investment objectives and risk tolerance.

VIOV vs VOO

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare VIOV (Vanguard S&P Small-Cap 600 Value ETF) and VOO (S&P 500 Vanguard ETF). This page reviews fees, holdings, dividend yields and how each fund tracks its target market. VIOV offers 0.10% expense ratio and 1.73% yield; VOO offers 0.03% expense ratio and 1.03% yield. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

VIOV

Metric

VOO

0.10%

Expense Ratio

0.03%

1.73%

Dividend Yield

1.03%

$1.80B

Net Assets

$1.08T

466

Holdings

516

Sep 7, 2010

Inception Date

Sep 7, 2010

–

Index Tracked

–

Small Value

Fund Category

Large Blend

VOO costs about $7.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

VIOV

Pros

Cost efficiency is strong, with Vanguard's 0.10% expense ratio offering competitive fees for a small-cap value ETF.
Diversification improves due to numerous small-cap holdings, reducing single-stock exposure compared to large-cap benchmarks.
Dividend yield of 1.73% is relatively attractive, appealing to income-focused investors within the value category.

Considerations

Specific index tracking methodology is unavailable, limiting transparency regarding fund structure and performance benchmark details.
Small-cap value exposure carries higher market volatility, resulting in potentially sharper drawdowns during economic uncertainty.
Modest $1.8 billion net assets are considerably smaller than mega-cap ETFs, slightly affecting trading liquidity considerations.

VOO

Pros

Exceptionally low cost stands out, with the 0.03% expense ratio among the cheapest options in the equity market.
Massive scale supports trading, as $1.08 trillion in net assets ensures high liquidity and tight bid-ask spreads.
Established history provides confidence, having delivered S&P 500 exposure since its September 2010 inception date reliably.

Considerations

Top-ten holding concentration is elevated, with significant weightings in individual stocks like Nvidia and Apple dominating assets.
Low dividend yield of 1.03% limits income potential, making it less suitable for yield-focused portfolio strategies.
Sector weighting data is not available, preventing clear assessment of diversification across specific industries within the portfolio.

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About VIOV and VOO

VIOV (VIOV)

The Vanguard S&P Small-Cap 600 Value ETF (VIOV) offers investors exposure to a diversified basket of small-capitalisation U.S. companies that exhibit value characteristics. By tracking a specific segment of the U.S. equity market, this fund aims to capture returns associated with smaller, potentially undervalued firms that may offer growth opportunities as they mature. With an expense ratio of just 0.10%, VIOV is designed for cost-conscious investors seeking broad market access. The fund holds approximately 466 positions, providing a wide range of industry exposure while maintaining a focus on value metrics. As with any investment in equities, the value of the fund's shares can fall as well as rise, and past performance is not a reliable indicator of future results. It serves as a tool for portfolio diversification within the small-cap space.

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

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VIOV vs VOO

Fund Snapshot