PMM vs VOO
Putnam Managed Municipal Income Trust 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 | PMM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.03% | |
| AUM | $2,812.2 | $979.0B | |
| Dividend Yield | 4.77% | 1.09% | |
| Holdings | 396 | 509 | |
| YTD Return | +5.55% | +14.48% | |
| 1Y Return | +13.45% | +22.02% | |
| 3Y Return (annualized) | +8.29% | +21.80% | |
| 5Y Return (annualized) | -0.93% | +13.36% | |
| Volatility (annualized) | 13.4% | 14.2% | |
| Max Drawdown | -63.9% | -34.3% | |
| Fund Family | Putnam Investments | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 24, 1989 | Sep 7, 2010 |
PMM vs VOO Performance
Putnam Managed Municipal Income Trust (PMM) is a ETF from Putnam Investments and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PMM returned +13.45% while VOO returned +22.02%. Year to date, PMM is up 5.55% versus a gain of 14.48% for VOO.
Over three years, PMM compounded at +8.29% per year against +21.80% for VOO; over five years the annualized figures are -0.93% and +13.36% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs -0.87%. 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 13.4% for PMM. 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 -63.9% for PMM 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PMM charges 0.98% per year while VOO charges 0.03%. On a $10,000 position that is $98 vs $3 annually, a gap of $95 per year that compounds over a long holding period. On income, PMM currently yields 4.77% against 1.09% for VOO.
Holdings Overlap
PMM and VOO share 0 holdings out of 629 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, PMM or VOO?
PMM has an expense ratio of 0.98% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $95 per year of difference.
Which performed better, PMM or VOO?
Over the past year PMM returned +13.45% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PMM annualized -0.87% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, PMM or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 13.4% for PMM. Worst drawdown: PMM -63.9% vs VOO -34.3%.
Should I hold both PMM and VOO?
PMM and VOO have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PMM and VOO?
PMM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 629 unique securities.
Which pays a higher dividend, PMM or VOO?
PMM yields 4.77% while VOO yields 1.09%, so PMM currently pays the higher dividend yield.
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