PBDC vs VTI
Putnam BDC Income ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | PBDC | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 13.49% | 0.03% | |
| AUM | $314M | $666.9B | |
| Dividend Yield | 11.60% | 1.07% | |
| Holdings | 28 | 3,543 | |
| YTD Return | -3.00% | +14.82% | |
| 1Y Return | -6.68% | +22.43% | |
| 3Y Return (annualized) | +7.49% | +21.93% | |
| 5Y Return (annualized) | - | +12.34% | |
| Volatility (annualized) | 14.4% | 15.4% | |
| Max Drawdown | -20.5% | -56.6% | |
| Fund Family | Putnam Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 29, 2022 | May 24, 2001 |
PBDC vs VTI Performance
Putnam BDC Income ETF (PBDC) is a ETF from Putnam Investments and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PBDC returned -6.68% while VTI returned +22.43%. Year to date, PBDC is down 3.00% versus a gain of 14.82% for VTI.
Over three years, PBDC compounded at +7.49% per year against +21.93% for VTI. Across the full 4-year window we track, PBDC has the edge at +13.91% annualized vs +8.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 14.4% for PBDC. 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 -20.5% for PBDC 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PBDC charges 13.49% per year while VTI charges 0.03%. On a $10,000 position that is $1349 vs $3 annually, a gap of $1346 per year that compounds over a long holding period. On income, PBDC currently yields 11.60% against 1.07% for VTI.
Holdings Overlap
PBDC and VTI share 0 holdings out of 2810 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PBDC or VTI?
PBDC has an expense ratio of 13.49% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $1346 per year of difference.
Which performed better, PBDC or VTI?
Over the past year PBDC returned -6.68% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (4 years), PBDC annualized +13.91% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, PBDC or VTI?
VTI has been the more volatile fund at 15.4% annualized versus 14.4% for PBDC. Worst drawdown: PBDC -20.5% vs VTI -56.6%.
Should I hold both PBDC and VTI?
PBDC and VTI have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PBDC and VTI?
PBDC and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2810 unique securities.
Which pays a higher dividend, PBDC or VTI?
PBDC yields 11.60% while VTI yields 1.07%, so PBDC currently pays the higher dividend yield.
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