PDT vs VTI
John Hancock Premium Dividend Fund 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 | PDT | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 2.41% | 0.03% | |
| AUM | $690M | $666.9B | |
| Dividend Yield | 6.95% | 1.07% | |
| Holdings | 144 | 3,543 | |
| YTD Return | +5.55% | +14.82% | |
| 1Y Return | +3.53% | +22.43% | |
| 3Y Return (annualized) | +15.99% | +21.93% | |
| 5Y Return (annualized) | +2.38% | +12.34% | |
| Volatility (annualized) | 16.7% | 15.4% | |
| Max Drawdown | -62.6% | -56.6% | |
| Fund Family | John Hancock Investment Management | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Dec 21, 1989 | May 24, 2001 |
PDT vs VTI Performance
John Hancock Premium Dividend Fund (PDT) is a ETF from John Hancock Investment Management and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PDT returned +3.53% while VTI returned +22.43%. Year to date, PDT is up 5.55% versus a gain of 14.82% for VTI.
Over three years, PDT compounded at +15.99% per year against +21.93% for VTI; over five years the annualized figures are +2.38% and +12.34% respectively. Across the full 25-year window we track, VTI has the edge at +8.16% annualized vs +1.94%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PDT has been the more volatile fund, with annualized monthly volatility of 16.7% compared with 15.4% for VTI. 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 -62.6% for PDT 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PDT charges 2.41% per year while VTI charges 0.03%. On a $10,000 position that is $241 vs $3 annually, a gap of $238 per year that compounds over a long holding period. On income, PDT currently yields 6.95% against 1.07% for VTI.
Holdings Overlap
PDT and VTI share 43 holdings out of 2843 unique holdings combined, representing a 4.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PDT or VTI?
PDT has an expense ratio of 2.41% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $238 per year of difference.
Which performed better, PDT or VTI?
Over the past year PDT returned +3.53% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), PDT annualized +1.94% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, PDT or VTI?
PDT has been the more volatile fund at 16.7% annualized versus 15.4% for VTI. Worst drawdown: PDT -62.6% vs VTI -56.6%.
Should I hold both PDT and VTI?
PDT and VTI have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDT and VTI?
PDT and VTI share 43 common holdings with a 4.1% weight overlap. Combined, they hold 2843 unique securities.
Which pays a higher dividend, PDT or VTI?
PDT yields 6.95% while VTI yields 1.07%, so PDT currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.