PCM 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

MetricPCMVOOWinner
Expense Ratio1.63%0.03%
AUM$71M$979.0B
Dividend Yield13.82%1.09%
Holdings318509
YTD Return+0.32%+13.44%
1Y Return+1.92%+22.62%
3Y Return (annualized)-5.33%+21.47%
5Y Return (annualized)-3.73%+13.27%
Volatility (annualized)16.2%14.1%
Max Drawdown-73.2%-34.3%
Fund FamilyPIMCO (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionSep 2, 1993Sep 7, 2010

PCM vs VOO Performance

PCM Fund Inc. (PCM) is a ETF from PIMCO (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PCM returned +1.92% while VOO returned +22.62%. Year to date, PCM is up 0.32% versus a gain of 13.44% for VOO.

Over three years, PCM compounded at -5.33% per year against +21.47% for VOO; over five years the annualized figures are -3.73% and +13.27% respectively. Across the full 16-year window we track, VOO has the edge at +13.55% annualized vs -0.65%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PCM has been the more volatile fund, with annualized monthly volatility of 16.2% 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 -73.2% for PCM 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PCM charges 1.63% per year while VOO charges 0.03%. On a $10,000 position that is $163 vs $3 annually, a gap of $160 per year that compounds over a long holding period. On income, PCM currently yields 13.82% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

PCM and VOO share 1 holdings out of 520 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PCMWeight in VOODifference
VICI0.60%0.04%0.56%

Frequently Asked Questions

Which is cheaper, PCM or VOO?

PCM has an expense ratio of 1.63% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $160 per year of difference.

Which performed better, PCM or VOO?

Over the past year PCM returned +1.92% vs +22.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PCM annualized -0.65% vs +13.55% for VOO. Past performance does not guarantee future results.

Which is riskier, PCM or VOO?

PCM has been the more volatile fund at 16.2% annualized versus 14.1% for VOO. Worst drawdown: PCM -73.2% vs VOO -34.3%.

Should I hold both PCM and VOO?

PCM and VOO have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PCM and VOO?

PCM and VOO share 1 common holdings with a 0.0% weight overlap. Combined, they hold 520 unique securities.

Which pays a higher dividend, PCM or VOO?

PCM yields 13.82% while VOO yields 1.09%, so PCM currently pays the higher dividend yield.

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