PDN vs VOO
Invesco FTSE RAFI Developed Markets ex-US Small-Mid ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. PDN offers more diversification with 1557 holdings.
Side-by-Side Comparison
| Metric | PDN | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.03% | |
| AUM | $350M | $979.0B | |
| Dividend Yield | 3.29% | 1.09% | |
| Holdings | 1,599 | 509 | |
| YTD Return | +12.42% | +13.79% | |
| 1Y Return | +22.04% | +23.01% | |
| 3Y Return (annualized) | +17.89% | +21.78% | |
| 5Y Return (annualized) | +7.17% | +13.39% | |
| Volatility (annualized) | 18.1% | 14.1% | |
| Max Drawdown | -60.1% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 27, 2007 | Sep 7, 2010 |
PDN vs VOO Performance
Invesco FTSE RAFI Developed Markets ex-US Small-Mid ETF (PDN) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PDN returned +22.04% while VOO returned +23.01%. Year to date, PDN is up 12.42% versus a gain of 13.79% for VOO.
Over three years, PDN compounded at +17.89% per year against +21.78% for VOO; over five years the annualized figures are +7.17% and +13.39% respectively. Across the full 16-year window we track, VOO has the edge at +13.57% annualized vs +4.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PDN has been the more volatile fund, with annualized monthly volatility of 18.1% 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 -60.1% for PDN 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PDN charges 0.47% per year while VOO charges 0.03%. On a $10,000 position that is $47 vs $3 annually, a gap of $44 per year that compounds over a long holding period. On income, PDN currently yields 3.29% against 1.09% for VOO.
Holdings Overlap
PDN and VOO share 3 holdings out of 2059 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PDN or VOO?
PDN has an expense ratio of 0.47% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, PDN or VOO?
Over the past year PDN returned +22.04% vs +23.01% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PDN annualized +4.15% vs +13.57% for VOO. Past performance does not guarantee future results.
Which is riskier, PDN or VOO?
PDN has been the more volatile fund at 18.1% annualized versus 14.1% for VOO. Worst drawdown: PDN -60.1% vs VOO -34.3%.
Should I hold both PDN and VOO?
PDN and VOO have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDN and VOO?
PDN and VOO share 3 common holdings with a 0.2% weight overlap. Combined, they hold 2059 unique securities.
Which pays a higher dividend, PDN or VOO?
PDN yields 3.29% while VOO yields 1.09%, so PDN currently pays the higher dividend yield.
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