PALC vs VTI
Pacer Lunt Large Cap Multi-Factor Alternator ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | PALC | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.03% | |
| AUM | $211M | $663.5B | |
| Dividend Yield | 1.02% | 1.07% | |
| Holdings | 181 | 3,543 | |
| YTD Return | +11.67% | +14.96% | |
| 1Y Return | +16.17% | +22.39% | |
| 3Y Return (annualized) | +15.94% | +21.51% | |
| 5Y Return (annualized) | +9.02% | +12.36% | |
| Volatility (annualized) | 17.3% | 15.4% | |
| Max Drawdown | -24.4% | -56.6% | |
| Fund Family | Pacer ETFs | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 24, 2020 | May 24, 2001 |
PALC vs VTI Performance
Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) is a ETF from Pacer ETFs and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PALC returned +16.17% while VTI returned +22.39%. Year to date, PALC is up 11.67% versus a gain of 14.96% for VTI.
Over three years, PALC compounded at +15.94% per year against +21.51% for VTI; over five years the annualized figures are +9.02% and +12.36% respectively. Across the full 6-year window we track, PALC has the edge at +16.17% annualized vs +8.16%. 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 15.4% for VTI. 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 -56.6% for VTI. 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 VTI 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 1.02% against 1.07% for VTI.
Holdings Overlap
PALC and VTI share 161 holdings out of 2800 unique holdings combined, representing a 24.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PALC or VTI?
PALC has an expense ratio of 0.60% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, PALC or VTI?
Over the past year PALC returned +16.17% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (6 years), PALC annualized +16.17% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, PALC or VTI?
PALC has been the more volatile fund at 17.3% annualized versus 15.4% for VTI. Worst drawdown: PALC -24.4% vs VTI -56.6%.
Should I hold both PALC and VTI?
PALC and VTI 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 VTI?
PALC and VTI share 161 common holdings with a 24.3% weight overlap. Combined, they hold 2800 unique securities.
Which pays a higher dividend, PALC or VTI?
PALC yields 1.02% while VTI yields 1.07%, so VTI currently pays the higher dividend yield.
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