PAB vs VOO
PAB vs VOO
PGIM Active Aggregate 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 | PAB | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.03% | |
| AUM | $70M | $979.0B | |
| Dividend Yield | 5.30% | 1.09% | |
| Holdings | 522 | 509 | |
| YTD Return | -0.39% | +9.95% | |
| 1Y Return | +3.04% | +19.58% | |
| 3Y Return (annualized) | +4.39% | +19.43% | |
| 5Y Return (annualized) | -0.38% | +12.89% | |
| Volatility (annualized) | 6.5% | 14.2% | |
| Max Drawdown | -19.3% | -34.3% | |
| Fund Family | PGIM Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 12, 2021 | Sep 7, 2010 |
PAB vs VOO Performance
PGIM Active Aggregate Bond ETF (PAB) is a ETF from PGIM Investments and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PAB returned +3.04% while VOO returned +19.58%. Year to date, PAB is down 0.39% versus a gain of 9.95% for VOO.
Over three years, PAB compounded at +4.39% per year against +19.43% for VOO; over five years the annualized figures are -0.38% and +12.89% respectively. Across the full 5-year window we track, VOO has the edge at +13.35% annualized vs +0.08%. 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 6.5% for PAB. 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 -19.3% for PAB 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PAB charges 0.19% per year while VOO charges 0.03%. On a $10,000 position that is $19 vs $3 annually, a gap of $16 per year that compounds over a long holding period. On income, PAB currently yields 5.30% against 1.09% for VOO.
Holdings Overlap
PAB and VOO share 0 holdings out of 915 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, PAB or VOO?
PAB has an expense ratio of 0.19% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, PAB or VOO?
Over the past year PAB returned +3.04% vs +19.58% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (5 years), PAB annualized +0.08% vs +13.35% for VOO. Past performance does not guarantee future results.
Which is riskier, PAB or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 6.5% for PAB. Worst drawdown: PAB -19.3% vs VOO -34.3%.
Should I hold both PAB and VOO?
PAB and VOO have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PAB and VOO?
PAB and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 915 unique securities.
Which pays a higher dividend, PAB or VOO?
PAB yields 5.30% while VOO yields 1.09%, so PAB currently pays the higher dividend yield.
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