PALC vs VOO
Pacer Lunt Large Cap Multi-Factor Alternator ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | PALC | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.03% | |
| AUM | $212M | $997.4B | |
| Dividend Yield | 1.10% | 1.08% | |
| Holdings | 184 | 509 | |
| YTD Return | +10.18% | +12.87% | |
| 1Y Return | +15.82% | +21.15% | |
| 3Y Return (annualized) | +15.09% | +20.93% | |
| 5Y Return (annualized) | +8.50% | +12.76% | |
| Volatility (annualized) | 17.3% | 14.1% | |
| Max Drawdown | -24.4% | -34.3% | |
| Fund Family | Pacer ETFs | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 24, 2020 | Sep 7, 2010 |
PALC vs VOO Performance
Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) is a ETF from Pacer ETFs and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PALC returned +15.82% while VOO returned +21.15%. Year to date, PALC is up 10.18% versus a gain of 12.87% for VOO.
Over three years, PALC compounded at +15.09% per year against +20.93% for VOO; over five years the annualized figures are +8.50% and +12.76% respectively. Across the full 6-year window we track, PALC has the edge at +15.78% annualized vs +13.46%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PALC has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 14.1% for VOO. 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 -24.4% for PALC and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PALC charges 0.60% per year while VOO charges 0.03%. On a $10,000 position that is $60 vs $3 annually, a gap of $57 per year that compounds over a long holding period. On income, PALC currently yields 1.10% against 1.08% for VOO.
Holdings Overlap
PALC and VOO share 181 holdings out of 507 unique holdings combined, representing a 24.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PALC or VOO?
PALC has an expense ratio of 0.60% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, PALC or VOO?
Over the past year PALC returned +15.82% vs +21.15% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (6 years), PALC annualized +15.78% vs +13.46% for VOO. Past performance does not guarantee future results.
Which is riskier, PALC or VOO?
PALC has been the more volatile fund at 17.3% annualized versus 14.1% for VOO. Worst drawdown: PALC -24.4% vs VOO -34.3%.
Should I hold both PALC and VOO?
PALC and VOO have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PALC and VOO?
PALC and VOO share 181 common holdings with a 24.1% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, PALC or VOO?
PALC yields 1.10% while VOO yields 1.08%, so PALC currently pays the higher dividend yield.
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