PMM vs VXUS
Putnam Managed Municipal Income Trust vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | PMM | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.05% | |
| AUM | $2,812.2 | $156.5B | |
| Dividend Yield | 4.77% | 2.60% | |
| Holdings | 396 | 8,747 | |
| YTD Return | +6.21% | +14.57% | |
| 1Y Return | +14.85% | +27.82% | |
| 3Y Return (annualized) | +8.45% | +19.27% | |
| 5Y Return (annualized) | -1.05% | +9.28% | |
| Volatility (annualized) | 13.4% | 15.1% | |
| Max Drawdown | -63.9% | -39.9% | |
| Fund Family | Putnam Investments | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 24, 1989 | Jan 26, 2011 |
PMM vs VXUS Performance
Putnam Managed Municipal Income Trust (PMM) is a ETF from Putnam Investments and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year PMM returned +14.85% while VXUS returned +27.82%. Year to date, PMM is up 6.21% versus a gain of 14.57% for VXUS.
Over three years, PMM compounded at +8.45% per year against +19.27% for VXUS; over five years the annualized figures are -1.05% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs -0.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PMM charges 0.98% per year while VXUS charges 0.05%. On a $10,000 position that is $98 vs $5 annually, a gap of $93 per year that compounds over a long holding period. On income, PMM currently yields 4.77% against 2.60% for VXUS.
Holdings Overlap
PMM and VXUS share 0 holdings out of 7985 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 VXUS?
PMM has an expense ratio of 0.98% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, PMM or VXUS?
Over the past year PMM returned +14.85% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), PMM annualized -0.85% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, PMM or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 13.4% for PMM. Worst drawdown: PMM -63.9% vs VXUS -39.9%.
Should I hold both PMM and VXUS?
PMM and VXUS have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PMM and VXUS?
PMM and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7985 unique securities.
Which pays a higher dividend, PMM or VXUS?
PMM yields 4.77% while VXUS yields 2.60%, so PMM currently pays the higher dividend yield.
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