PAI vs VOO
Western Asset Investment Grade Income Fund Inc. vs Vanguard S&P 500 ETF
Which is better, PAI or VOO?
Long Term Mid Quality against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PAI | VOO |
|---|---|---|
| Expense Ratio | 0.73% | 0.03%Best |
| AUM | $122M | $997.4B |
| Dividend Yield | 4.90% | 1.04% |
| Holdings | 476 | 509 |
| YTD Return | -3.82% | +11.01%Best |
| 1Y Return | -5.13% | +15.60%Best |
| 3Y Return (annualized) | +6.01% | +20.82%Best |
| 5Y Return (annualized) | -2.22% | +12.60%Best |
| Volatility (annualized) | 11.5%Best | 14.1% |
| Max Drawdown | -33.9%Best | -34.3% |
| $10,000 over 5 years | $8,938 | $18,101Best |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Blend |
| Inception | Mar 22, 1973 | Sep 7, 2010 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 16, 2026 (16 years).
PAI vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
PAI vs VOO Performance
Western Asset Investment Grade Income Fund Inc. (PAI) is an ETF from Franklin Templeton Investments (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year PAI returned -5.13% while VOO returned +15.60%. Year to date, PAI is down 3.82% versus a gain of 11.01% for VOO.
Over three years, PAI compounded at +6.01% per year against +20.82% for VOO; over five years the annualized figures are -2.22% and +12.60% respectively. Across the full 16-year window we track, VOO has the edge at +13.30% annualized vs +0.69%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 11.5% for PAI. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -33.9% for PAI and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.50. They move together some of the time, and apart the rest.
Fees and Cost Over Time
PAI charges 0.73% per year while VOO charges 0.03%. On a $10,000 position that is $73 vs $3 annually, a gap of $70 per year that compounds over a long holding period. On income, PAI currently yields 4.90% against 1.04% for VOO.
Holdings Overlap
At least 0.3% of VOO's money is in holdings PAI also owns.
Stated as a floor: for PAI, our book for it covers 1.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 7 positions we hold weights for in PAI and 494 in VOO, against full books of 476 and 509.
Top Shared Holdings
| Stock | Weight in PAI | Weight in VOO | Difference |
|---|---|---|---|
| CCitigroup Inc. | 0.34% | 0.34% | 0.00% |
You are not choosing between two funds in isolation.
Whichever of PAI and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PAI or VOO?
PAI has an expense ratio of 0.73% while VOO charges 0.03%. VOO is the cheaper option, by $70 a year on a $10,000 investment.
Which performed better, PAI or VOO?
Over the past year PAI returned -5.13% vs +15.60% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PAI annualized +0.69% vs +13.30% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PAI or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 11.5% for PAI. Worst drawdown: PAI -33.9% vs VOO -34.3%.
Should I hold both PAI and VOO?
PAI and VOO have a monthly-return correlation of 0.50, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, PAI or VOO?
PAI yields 4.90% while VOO yields 1.04%, so PAI currently pays the higher dividend yield.
Is VOO better than PAI?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.