PEJ vs VOO
Invesco Leisure and Entertainment 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 505 holdings.
Side-by-Side Comparison
| Metric | PEJ | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.57% | 0.03% | |
| AUM | $251M | $979.0B | |
| Dividend Yield | 0.50% | 1.09% | |
| Holdings | 32 | 509 | |
| YTD Return | +12.80% | +14.48% | |
| 1Y Return | +18.17% | +22.02% | |
| 3Y Return (annualized) | +18.54% | +21.80% | |
| 5Y Return (annualized) | +7.50% | +13.36% | |
| Volatility (annualized) | 22.2% | 14.2% | |
| Max Drawdown | -67.3% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 23, 2005 | Sep 7, 2010 |
PEJ vs VOO Performance
Invesco Leisure and Entertainment ETF (PEJ) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PEJ returned +18.17% while VOO returned +22.02%. Year to date, PEJ is up 12.80% versus a gain of 14.48% for VOO.
Over three years, PEJ compounded at +18.54% per year against +21.80% for VOO; over five years the annualized figures are +7.50% and +13.36% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs +7.66%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PEJ has been the more volatile fund, with annualized monthly volatility of 22.2% compared with 14.2% 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 -67.3% for PEJ 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PEJ charges 0.57% per year while VOO charges 0.03%. On a $10,000 position that is $57 vs $3 annually, a gap of $54 per year that compounds over a long holding period. On income, PEJ currently yields 0.50% against 1.09% for VOO.
Holdings Overlap
PEJ and VOO share 9 holdings out of 526 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PEJ or VOO?
PEJ has an expense ratio of 0.57% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, PEJ or VOO?
Over the past year PEJ returned +18.17% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PEJ annualized +7.66% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, PEJ or VOO?
PEJ has been the more volatile fund at 22.2% annualized versus 14.2% for VOO. Worst drawdown: PEJ -67.3% vs VOO -34.3%.
Should I hold both PEJ and VOO?
PEJ and VOO have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PEJ and VOO?
PEJ and VOO share 9 common holdings with a 0.7% weight overlap. Combined, they hold 526 unique securities.
Which pays a higher dividend, PEJ or VOO?
PEJ yields 0.50% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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