VOO vs VUSD

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Topic Author
Neuralgia
Posts: 45
Joined: Tue Mar 23, 2021 5:26 pm

VOO vs VUSD

Post by Neuralgia »

So quick question.

Both Vanguard. Both follow the S&P500. Both in USD.

Why there's a difference in the daily results?

For example, TODAY VOO is up +1.41, but VUSD is up +1.17.

Am I missing something?
starboi
Posts: 113
Joined: Fri Apr 23, 2021 11:33 am

Re: VOO vs VUSD

Post by starboi »

They trade on different exchanges?
TedSwippet
Posts: 3747
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: VOO vs VUSD

Post by TedSwippet »

starboi wrote: Tue Jul 20, 2021 5:14 pm They trade on different exchanges?
Exactly.

VOO's daily change, from open to close price, tells you what the S&P 500 stocks did between 2.30pm and 9.30pm UTC (NYSE hours). VUSD's tells you what these same stocks did between 8am and 4.30pm UTC (LSE hours). The offset start and end times mean you cannot expect these to match across a single day.

A rise or fall between 4.30pm and 9.30pm UTC will show in VOO's closing price, but not VUSD's, because it has already closed. It will of course show up in VUSD's price at the next day's open (along with anything else that has happened in the meantime).
Last edited by TedSwippet on Wed Jul 21, 2021 11:14 am, edited 2 times in total.
Topic Author
Neuralgia
Posts: 45
Joined: Tue Mar 23, 2021 5:26 pm

Re: VOO vs VUSD

Post by Neuralgia »

Thank you for your explanation.

Long term they should behave exactly the same, ¿right?
TedSwippet
Posts: 3747
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: VOO vs VUSD

Post by TedSwippet »

Neuralgia wrote: Tue Jul 20, 2021 6:37 pm Long term they should behave exactly the same, ¿right?
Right. The chart linked below shows the five-year performance of VOO and VUSD. At this scale there is no discernible difference.

Five year comparison of VOO:NYSERCA and VUSD:LON

If you switch the above to the five day comparison, you can see how the offset but overlapping trading hours causes the daily percentage change discontinuities across these two ETFs.
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