PSDM vs VOO

PSDM vs VOO

Which is better, PSDM or VOO?

Short Term High Quality against Large Cap Blend.

VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window.

Lower Fees: VOOHigher Returns: VOO

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricPSDMVOO
Expense Ratio0.40%0.03%Best
AUM$229M$997.4B
Dividend Yield5.19%1.04%
Holdings796509
YTD Return-2.07%+12.37%Best
1Y Return-1.21%+16.61%Best
3Y Return (annualized)+4.19%+21.37%Best
5Y Return (annualized)-+13.49%
Volatility (annualized)2.2%Best12.8%
Max Drawdown-2.7%Best-18.7%
$10,000 over 3.1 years$11,337$17,246Best
Fund FamilyPGIM InvestmentsVanguard (US)
CategoryFixed IncomeEquity
StyleShort Term High QualityLarge Cap Blend
InceptionJul 19, 2023Sep 7, 2010

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 3.1 years row, are measured over the window both funds cover: Jul 31, 2023 to Sep 18, 2026 (3.1 years).

PSDM vs VOO growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3.1 years both funds cover.

PSDM vs VOO Performance

PGIM Short Duration Multi-Sector Bond ETF (PSDM) is an ETF from PGIM Investments and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year PSDM returned -1.21% while VOO returned +16.61%. Year to date, PSDM is down 2.07% versus a gain of 12.37% for VOO.

Over three years, PSDM compounded at +4.19% per year against +21.37% for VOO.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 12.8% 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 -2.7% for PSDM and -18.7% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.51. They move together some of the time, and apart the rest.

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 5.19% against 1.04% for VOO.

Holdings Overlap

VOO already in PSDM0.3%

At least 0.3% of VOO's money is in holdings PSDM also owns.

Stated as a floor: for PSDM, our book for it covers 38.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 297 positions we hold weights for in PSDM and 494 in VOO, against full books of 796 and 509.

Top Shared Holdings

StockWeight in PSDMWeight in VOODifference
CCitigroup Inc 6.875 11/73 6.88 2173-11-150.10%0.34%0.24%

You are not choosing between two funds in isolation.

Whichever of PSDM and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

PSDMVOO

Free for up to 10 holdings. No account needed.

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, by $37 a year on a $10,000 investment.

Which performed better, PSDM or VOO?

Over the past year PSDM returned -1.21% vs +16.61% for VOO, so VOO leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PSDM or VOO?

VOO has been the more volatile fund at 12.8% annualized versus 2.2% for PSDM. Worst drawdown: PSDM -2.7% vs VOO -18.7%.

Should I hold both PSDM and VOO?

PSDM and VOO have a monthly-return correlation of 0.51, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, PSDM or VOO?

PSDM yields 5.19% while VOO yields 1.04%, so PSDM currently pays the higher dividend yield.

Is VOO better than PSDM?

VOO has a lower expense ratio. VOO led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.