PSDM vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricPSDMVXUSWinner
Expense Ratio0.40%0.05%
AUM$219M$156.5B
Dividend Yield5.23%2.60%
Holdings8488,747
YTD Return-1.13%+14.57%
1Y Return+0.77%+27.82%
3Y Return (annualized)+4.62%+19.27%
5Y Return (annualized)-+9.28%
Volatility (annualized)2.2%15.1%
Max Drawdown-2.2%-39.9%
Fund FamilyPGIM InvestmentsVanguard (US)
CategoryFixed IncomeEquity
InceptionJul 19, 2023Jan 26, 2011

PSDM vs VXUS Performance

PGIM Short Duration Multi-Sector Bond ETF (PSDM) is a ETF from PGIM Investments and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year PSDM returned +0.77% while VXUS returned +27.82%. Year to date, PSDM is down 1.13% versus a gain of 14.57% for VXUS.

Over three years, PSDM compounded at +4.62% per year against +19.27% for VXUS. Across the full 3-year window we track, VXUS has the edge at +4.86% annualized vs +4.62%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PSDM charges 0.40% per year while VXUS charges 0.05%. On a $10,000 position that is $40 vs $5 annually, a gap of $35 per year that compounds over a long holding period. On income, PSDM currently yields 5.23% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

PSDM and VXUS share 1 holdings out of 8182 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PSDMWeight in VXUSDifference
MIN:AU0.05%0.02%0.03%

Frequently Asked Questions

Which is cheaper, PSDM or VXUS?

PSDM has an expense ratio of 0.40% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $35 per year of difference.

Which performed better, PSDM or VXUS?

Over the past year PSDM returned +0.77% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), PSDM annualized +4.62% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, PSDM or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 2.2% for PSDM. Worst drawdown: PSDM -2.2% vs VXUS -39.9%.

Should I hold both PSDM and VXUS?

PSDM and VXUS have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PSDM and VXUS?

PSDM and VXUS share 1 common holdings with a 0.0% weight overlap. Combined, they hold 8182 unique securities.

Which pays a higher dividend, PSDM or VXUS?

PSDM yields 5.23% while VXUS yields 2.60%, so PSDM currently pays the higher dividend yield.

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