PPEM vs VTI

Quick Verdict

VTI has a lower expense ratio. PPEM delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: PPEMMore Diversified: VTI

Side-by-Side Comparison

MetricPPEMVTIWinner
Expense Ratio0.60%0.03%
AUM$2M$663.5B
Dividend Yield49.41%1.07%
Holdings1163,543
YTD Return+28.48%+14.16%
1Y Return+55.32%+23.62%
3Y Return (annualized)+24.92%+21.43%
5Y Return (annualized)-+12.33%
Volatility (annualized)16.7%15.3%
Max Drawdown-18.4%-56.6%
Fund FamilyPutnam InvestmentsVanguard (US)
CategoryEquityEquity
InceptionJan 19, 2023May 24, 2001

PPEM vs VTI Performance

Putnam PanAgora ESG Emerging Markets Equity ETF (PPEM) is a ETF from Putnam Investments and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PPEM returned +55.32% while VTI returned +23.62%. Year to date, PPEM is up 28.48% versus a gain of 14.16% for VTI.

Over three years, PPEM compounded at +24.92% per year against +21.43% for VTI. Across the full 3-year window we track, PPEM has the edge at +21.29% annualized vs +8.14%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PPEM has been the more volatile fund, with annualized monthly volatility of 16.7% compared with 15.3% 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 -18.4% for PPEM 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PPEM charges 0.60% per year while VTI charges 0.03%. On a $10,000 position that is $60 vs $3 annually, a gap of $57 per year that compounds over a long holding period. On income, PPEM currently yields 49.41% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

PPEM and VTI share 0 holdings out of 2892 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, PPEM or VTI?

PPEM has an expense ratio of 0.60% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $57 per year of difference.

Which performed better, PPEM or VTI?

Over the past year PPEM returned +55.32% vs +23.62% for VTI, so PPEM leads on 1-year performance. Over the longest common window we track (3 years), PPEM annualized +21.29% vs +8.14% for VTI. Past performance does not guarantee future results.

Which is riskier, PPEM or VTI?

PPEM has been the more volatile fund at 16.7% annualized versus 15.3% for VTI. Worst drawdown: PPEM -18.4% vs VTI -56.6%.

Should I hold both PPEM and VTI?

PPEM and VTI have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PPEM and VTI?

PPEM and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2892 unique securities.

Which pays a higher dividend, PPEM or VTI?

PPEM yields 49.41% while VTI yields 1.07%, so PPEM currently pays the higher dividend yield.

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