PCY vs VTI
Invesco Emerging Markets Sovereign Debt 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 | PCY | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.03% | |
| AUM | $1.4B | $666.9B | |
| Dividend Yield | 6.01% | 1.07% | |
| Holdings | 105 | 3,543 | |
| YTD Return | +0.60% | +12.65% | |
| 1Y Return | +6.89% | +21.39% | |
| 3Y Return (annualized) | +10.87% | +21.54% | |
| 5Y Return (annualized) | +0.97% | +12.11% | |
| Volatility (annualized) | 13.6% | 15.3% | |
| Max Drawdown | -49.4% | -56.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 11, 2007 | May 24, 2001 |
PCY vs VTI Performance
Invesco Emerging Markets Sovereign Debt ETF (PCY) is a ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PCY returned +6.89% while VTI returned +21.39%. Year to date, PCY is up 0.60% versus a gain of 12.65% for VTI.
Over three years, PCY compounded at +10.87% per year against +21.54% for VTI; over five years the annualized figures are +0.97% and +12.11% respectively. Across the full 19-year window we track, VTI has the edge at +8.07% annualized vs +0.75%. 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 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 -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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCY charges 0.50% per year while VTI 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 6.01% against 1.07% for VTI.
Holdings Overlap
PCY and VTI share 0 holdings out of 2865 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 VTI?
PCY has an expense ratio of 0.50% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, PCY or VTI?
Over the past year PCY returned +6.89% vs +21.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), PCY annualized +0.75% vs +8.07% for VTI. Past performance does not guarantee future results.
Which is riskier, PCY or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 13.6% for PCY. Worst drawdown: PCY -49.4% vs VTI -56.6%.
Should I hold both PCY and VTI?
PCY and VTI have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCY and VTI?
PCY and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2865 unique securities.
Which pays a higher dividend, PCY or VTI?
PCY yields 6.01% while VTI yields 1.07%, so PCY currently pays the higher dividend yield.
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