PCY vs VOO
Invesco Emerging Markets Sovereign Debt ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | PCY | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.03% | |
| AUM | $1.4B | $979.0B | |
| Dividend Yield | 5.81% | 1.09% | |
| Holdings | 104 | 509 | |
| YTD Return | +1.48% | +14.48% | |
| 1Y Return | +7.20% | +22.02% | |
| 3Y Return (annualized) | +10.24% | +21.80% | |
| 5Y Return (annualized) | +1.13% | +13.36% | |
| Volatility (annualized) | 13.6% | 14.2% | |
| Max Drawdown | -49.4% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 11, 2007 | Sep 7, 2010 |
PCY vs VOO Performance
Invesco Emerging Markets Sovereign Debt ETF (PCY) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PCY returned +7.20% while VOO returned +22.02%. Year to date, PCY is up 1.48% versus a gain of 14.48% for VOO.
Over three years, PCY compounded at +10.24% per year against +21.80% for VOO; over five years the annualized figures are +1.13% and +13.36% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs +0.80%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 13.6% for PCY. 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 -49.4% for PCY 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCY charges 0.50% per year while VOO charges 0.03%. On a $10,000 position that is $50 vs $3 annually, a gap of $47 per year that compounds over a long holding period. On income, PCY currently yields 5.81% against 1.09% for VOO.
Holdings Overlap
PCY and VOO share 0 holdings out of 583 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, PCY or VOO?
PCY has an expense ratio of 0.50% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, PCY or VOO?
Over the past year PCY returned +7.20% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PCY annualized +0.80% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, PCY or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 13.6% for PCY. Worst drawdown: PCY -49.4% vs VOO -34.3%.
Should I hold both PCY and VOO?
PCY and VOO have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCY and VOO?
PCY and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 583 unique securities.
Which pays a higher dividend, PCY or VOO?
PCY yields 5.81% while VOO yields 1.09%, so PCY currently pays the higher dividend yield.
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