PSDM vs VTI

Quick Verdict

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

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricPSDMVTIWinner
Expense Ratio0.40%0.03%
AUM$219M$663.5B
Dividend Yield5.23%1.07%
Holdings8483,543
YTD Return-1.04%+14.96%
1Y Return+0.58%+22.39%
3Y Return (annualized)+4.69%+21.51%
5Y Return (annualized)-+12.36%
Volatility (annualized)2.2%15.4%
Max Drawdown-2.2%-56.6%
Fund FamilyPGIM InvestmentsVanguard (US)
CategoryFixed IncomeEquity
InceptionJul 19, 2023May 24, 2001

PSDM vs VTI Performance

PGIM Short Duration Multi-Sector Bond ETF (PSDM) is a ETF from PGIM Investments and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PSDM returned +0.58% while VTI returned +22.39%. Year to date, PSDM is down 1.04% versus a gain of 14.96% for VTI.

Over three years, PSDM compounded at +4.69% per year against +21.51% for VTI. Across the full 3-year window we track, VTI has the edge at +8.16% annualized vs +4.63%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PSDM charges 0.40% per year while VTI 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 1.07% for VTI.

Holdings Overlap

0.0%overlap

PSDM and VTI share 0 holdings out of 3105 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 VTI?

PSDM has an expense ratio of 0.40% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $37 per year of difference.

Which performed better, PSDM or VTI?

Over the past year PSDM returned +0.58% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), PSDM annualized +4.63% vs +8.16% for VTI. Past performance does not guarantee future results.

Which is riskier, PSDM or VTI?

VTI has been the more volatile fund at 15.4% annualized versus 2.2% for PSDM. Worst drawdown: PSDM -2.2% vs VTI -56.6%.

Should I hold both PSDM and VTI?

PSDM and VTI have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PSDM and VTI?

PSDM and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3105 unique securities.

Which pays a higher dividend, PSDM or VTI?

PSDM yields 5.23% while VTI yields 1.07%, so PSDM currently pays the higher dividend yield.

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