PFM vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricPFMVOOWinner
Expense Ratio0.52%0.03%
AUM$792M$979.0B
Dividend Yield1.34%1.09%
Holdings433509
YTD Return+11.80%+13.53%
1Y Return+19.59%+23.65%
3Y Return (annualized)+15.94%+21.27%
5Y Return (annualized)+11.05%+13.52%
Volatility (annualized)13.4%14.1%
Max Drawdown-54.7%-34.3%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
InceptionSep 15, 2005Sep 7, 2010

PFM vs VOO Performance

Invesco Dividend Achievers ETF (PFM) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PFM returned +19.59% while VOO returned +23.65%. Year to date, PFM is up 11.80% versus a gain of 13.53% for VOO.

Over three years, PFM compounded at +15.94% per year against +21.27% for VOO; over five years the annualized figures are +11.05% and +13.52% respectively. Across the full 16-year window we track, VOO has the edge at +13.57% annualized vs +7.18%. 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 13.4% for PFM. 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 -54.7% for PFM 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

PFM charges 0.52% per year while VOO charges 0.03%. On a $10,000 position that is $52 vs $3 annually, a gap of $49 per year that compounds over a long holding period. On income, PFM currently yields 1.34% against 1.09% for VOO.

Holdings Overlap

42.6%overlap

PFM and VOO share 206 holdings out of 729 unique holdings combined, representing a 42.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PFMWeight in VOODifference
AAPL3.59%6.59%3.00%
MSFT3.25%4.30%1.05%
AVGO3.32%2.77%0.55%
LLYProProPro
JPMProProPro
WMTProProPro
JNJProProPro
VProProPro
XOMProProPro
LRCXProProPro
See all 10 holdings PFM shares with VOO
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, PFM or VOO?

PFM has an expense ratio of 0.52% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $49 per year of difference.

Which performed better, PFM or VOO?

Over the past year PFM returned +19.59% vs +23.65% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PFM annualized +7.18% vs +13.57% for VOO. Past performance does not guarantee future results.

Which is riskier, PFM or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 13.4% for PFM. Worst drawdown: PFM -54.7% vs VOO -34.3%.

Should I hold both PFM and VOO?

PFM and VOO have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between PFM and VOO?

PFM and VOO share 206 common holdings with a 42.6% weight overlap. Combined, they hold 729 unique securities.

Which pays a higher dividend, PFM or VOO?

PFM yields 1.34% while VOO yields 1.09%, so PFM currently pays the higher dividend yield.

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