PSDM vs VOO
PGIM Short Duration Multi-Sector Bond 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 | PSDM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.03% | |
| AUM | $219M | $979.0B | |
| Dividend Yield | 5.23% | 1.09% | |
| Holdings | 848 | 509 | |
| YTD Return | -1.04% | +14.48% | |
| 1Y Return | +0.58% | +22.02% | |
| 3Y Return (annualized) | +4.69% | +21.80% | |
| 5Y Return (annualized) | - | +13.36% | |
| Volatility (annualized) | 2.2% | 14.2% | |
| Max Drawdown | -2.2% | -34.3% | |
| Fund Family | PGIM Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 19, 2023 | Sep 7, 2010 |
PSDM vs VOO Performance
PGIM Short Duration Multi-Sector Bond ETF (PSDM) is a ETF from PGIM Investments and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PSDM returned +0.58% while VOO returned +22.02%. Year to date, PSDM is down 1.04% versus a gain of 14.48% for VOO.
Over three years, PSDM compounded at +4.69% per year against +21.80% for VOO. Across the full 3-year window we track, VOO has the edge at +13.61% annualized vs +4.63%. 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 2.2% for PSDM. 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 -2.2% for PSDM 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSDM charges 0.40% per year while VOO charges 0.03%. On a $10,000 position that is $40 vs $3 annually, a gap of $37 per year that compounds over a long holding period. On income, PSDM currently yields 5.23% against 1.09% for VOO.
Holdings Overlap
PSDM and VOO share 0 holdings out of 827 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, PSDM or VOO?
PSDM has an expense ratio of 0.40% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, PSDM or VOO?
Over the past year PSDM returned +0.58% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), PSDM annualized +4.63% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, PSDM or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 2.2% for PSDM. Worst drawdown: PSDM -2.2% vs VOO -34.3%.
Should I hold both PSDM and VOO?
PSDM and VOO have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSDM and VOO?
PSDM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 827 unique securities.
Which pays a higher dividend, PSDM or VOO?
PSDM yields 5.23% while VOO yields 1.09%, so PSDM currently pays the higher dividend yield.
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