PCEF vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricPCEFVTIWinner
Expense Ratio2.71%0.03%
AUM$796M$663.5B
Dividend Yield7.61%1.07%
Holdings1103,543
YTD Return+7.69%+13.87%
1Y Return+11.72%+23.31%
3Y Return (annualized)+13.27%+21.17%
5Y Return (annualized)+4.84%+12.23%
Volatility (annualized)11.6%15.3%
Max Drawdown-46.0%-56.6%
Fund FamilyInvesco (US)Vanguard (US)
CategoryAllocation/BalancedEquity
InceptionFeb 19, 2010May 24, 2001

PCEF vs VTI Performance

Invesco CEF Income Composite ETF (PCEF) is a ETF from Invesco (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PCEF returned +11.72% while VTI returned +23.31%. Year to date, PCEF is up 7.69% versus a gain of 13.87% for VTI.

Over three years, PCEF compounded at +13.27% per year against +21.17% for VTI; over five years the annualized figures are +4.84% and +12.23% respectively. Across the full 17-year window we track, VTI has the edge at +8.13% annualized vs +1.52%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -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 0.87. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PCEF charges 2.71% per year while VTI 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 1.07% for VTI.

Holdings Overlap

0.0%overlap

PCEF and VTI share 0 holdings out of 2890 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 VTI?

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

Which performed better, PCEF or VTI?

Over the past year PCEF returned +11.72% vs +23.31% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (17 years), PCEF annualized +1.52% vs +8.13% for VTI. Past performance does not guarantee future results.

Which is riskier, PCEF or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 11.6% for PCEF. Worst drawdown: PCEF -46.0% vs VTI -56.6%.

Should I hold both PCEF and VTI?

PCEF and VTI 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 VTI?

PCEF and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2890 unique securities.

Which pays a higher dividend, PCEF or VTI?

PCEF yields 7.61% while VTI yields 1.07%, so PCEF currently pays the higher dividend yield.

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