PMO vs VTI
PMO vs VTI
Putnam Municipal Opportunities Trust vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | PMO | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.03% | |
| AUM | $4,829 | $663.5B | |
| Dividend Yield | 4.04% | 1.07% | |
| Holdings | 288 | 3,543 | |
| YTD Return | +0.30% | +14.20% | |
| 1Y Return | +10.75% | +24.16% | |
| 3Y Return (annualized) | +5.92% | +21.12% | |
| 5Y Return (annualized) | -1.95% | +12.37% | |
| Volatility (annualized) | 11.5% | 15.3% | |
| Max Drawdown | -50.4% | -56.6% | |
| Fund Family | Putnam Investments | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | May 28, 1993 | May 24, 2001 |
PMO vs VTI Performance
Putnam Municipal Opportunities Trust (PMO) is a ETF from Putnam Investments and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PMO returned +10.75% while VTI returned +24.16%. Year to date, PMO is up 0.30% versus a gain of 14.20% for VTI.
Over three years, PMO compounded at +5.92% per year against +21.12% for VTI; over five years the annualized figures are -1.95% and +12.37% respectively. Across the full 25-year window we track, VTI has the edge at +8.14% annualized vs -0.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 11.5% for PMO. 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 -50.4% for PMO 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PMO charges 1.02% per year while VTI charges 0.03%. On a $10,000 position that is $102 vs $3 annually, a gap of $99 per year that compounds over a long holding period. On income, PMO currently yields 4.04% against 1.07% for VTI.
Holdings Overlap
PMO and VTI share 0 holdings out of 2893 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, PMO or VTI?
PMO has an expense ratio of 1.02% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $99 per year of difference.
Which performed better, PMO or VTI?
Over the past year PMO returned +10.75% vs +24.16% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), PMO annualized -0.05% vs +8.14% for VTI. Past performance does not guarantee future results.
Which is riskier, PMO or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 11.5% for PMO. Worst drawdown: PMO -50.4% vs VTI -56.6%.
Should I hold both PMO and VTI?
PMO and VTI have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PMO and VTI?
PMO and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2893 unique securities.
Which pays a higher dividend, PMO or VTI?
PMO yields 4.04% while VTI yields 1.07%, so PMO currently pays the higher dividend yield.
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