PAI vs VOO
PAI vs VOO
Western Asset Investment Grade Income Fund Inc. 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 | PAI | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.03% | |
| AUM | $123M | $979.0B | |
| Dividend Yield | 4.81% | 1.09% | |
| Holdings | 476 | 509 | |
| YTD Return | -1.98% | +13.11% | |
| 1Y Return | -2.16% | +22.88% | |
| 3Y Return (annualized) | +6.20% | +21.08% | |
| 5Y Return (annualized) | -0.87% | +13.26% | |
| Volatility (annualized) | 12.6% | 14.1% | |
| Max Drawdown | -49.6% | -34.3% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 22, 1973 | Sep 7, 2010 |
PAI vs VOO Performance
Western Asset Investment Grade Income Fund Inc. (PAI) is a ETF from Franklin Templeton Investments (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PAI returned -2.16% while VOO returned +22.88%. Year to date, PAI is down 1.98% versus a gain of 13.11% for VOO.
Over three years, PAI compounded at +6.20% per year against +21.08% for VOO; over five years the annualized figures are -0.87% and +13.26% respectively. Across the full 16-year window we track, VOO has the edge at +13.54% annualized vs +0.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 12.6% for PAI. 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 -49.6% for PAI 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PAI charges 0.73% per year while VOO charges 0.03%. On a $10,000 position that is $73 vs $3 annually, a gap of $70 per year that compounds over a long holding period. On income, PAI currently yields 4.81% against 1.09% for VOO.
Holdings Overlap
PAI and VOO share 1 holdings out of 825 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PAI | Weight in VOO | Difference |
|---|---|---|---|
| C | 0.21% | 0.36% | 0.15% |
Frequently Asked Questions
Which is cheaper, PAI or VOO?
PAI has an expense ratio of 0.73% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, PAI or VOO?
Over the past year PAI returned -2.16% vs +22.88% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PAI annualized +0.09% vs +13.54% for VOO. Past performance does not guarantee future results.
Which is riskier, PAI or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 12.6% for PAI. Worst drawdown: PAI -49.6% vs VOO -34.3%.
Should I hold both PAI and VOO?
PAI and VOO have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PAI and VOO?
PAI and VOO share 1 common holdings with a 0.2% weight overlap. Combined, they hold 825 unique securities.
Which pays a higher dividend, PAI or VOO?
PAI yields 4.81% while VOO yields 1.09%, so PAI currently pays the higher dividend yield.
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