PCEF vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricPCEFVOOWinner
Expense Ratio2.71%0.03%
AUM$796M$979.0B
Dividend Yield7.61%1.09%
Holdings110509
YTD Return+7.64%+13.79%
1Y Return+11.67%+23.01%
3Y Return (annualized)+13.26%+21.78%
5Y Return (annualized)+4.89%+13.39%
Volatility (annualized)11.6%14.1%
Max Drawdown-46.0%-34.3%
Fund FamilyInvesco (US)Vanguard (US)
CategoryAllocation/BalancedEquity
InceptionFeb 19, 2010Sep 7, 2010

PCEF vs VOO Performance

Invesco CEF Income Composite ETF (PCEF) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PCEF returned +11.67% while VOO returned +23.01%. Year to date, PCEF is up 7.64% versus a gain of 13.79% for VOO.

Over three years, PCEF compounded at +13.26% per year against +21.78% for VOO; over five years the annualized figures are +4.89% and +13.39% respectively. Across the full 16-year window we track, VOO has the edge at +13.57% annualized vs +1.52%. 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 11.6% for PCEF. 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 -46.0% for PCEF 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 0.87. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PCEF charges 2.71% per year while VOO charges 0.03%. On a $10,000 position that is $271 vs $3 annually, a gap of $268 per year that compounds over a long holding period. On income, PCEF currently yields 7.61% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

PCEF and VOO share 0 holdings out of 612 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, PCEF or VOO?

PCEF has an expense ratio of 2.71% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $268 per year of difference.

Which performed better, PCEF or VOO?

Over the past year PCEF returned +11.67% vs +23.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PCEF annualized +1.52% vs +13.57% for VOO. Past performance does not guarantee future results.

Which is riskier, PCEF or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 11.6% for PCEF. Worst drawdown: PCEF -46.0% vs VOO -34.3%.

Should I hold both PCEF and VOO?

PCEF and VOO have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PCEF and VOO?

PCEF and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 612 unique securities.

Which pays a higher dividend, PCEF or VOO?

PCEF yields 7.61% while VOO yields 1.09%, so PCEF currently pays the higher dividend yield.

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