PFM 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

MetricPFMVTIWinner
Expense Ratio0.52%0.03%
AUM$792M$663.5B
Dividend Yield1.34%1.07%
Holdings4333,543
YTD Return+10.31%+11.83%
1Y Return+18.00%+21.79%
3Y Return (annualized)+15.74%+20.40%
5Y Return (annualized)+10.57%+11.96%
Volatility (annualized)13.4%15.3%
Max Drawdown-54.7%-56.6%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
InceptionSep 15, 2005May 24, 2001

PFM vs VTI Performance

Invesco Dividend Achievers ETF (PFM) is a ETF from Invesco (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PFM returned +18.00% while VTI returned +21.79%. Year to date, PFM is up 10.31% versus a gain of 11.83% for VTI.

Over three years, PFM compounded at +15.74% per year against +20.40% for VTI; over five years the annualized figures are +10.57% and +11.96% respectively. Across the full 21-year window we track, VTI has the edge at +8.06% annualized vs +7.11%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -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 0.92. 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 VTI 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 1.07% for VTI.

Holdings Overlap

38.9%overlap

PFM and VTI share 345 holdings out of 2868 unique holdings combined, representing a 38.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PFMWeight in VTIDifference
AAPL3.59%5.84%2.25%
MSFT3.25%3.81%0.56%
AVGO3.32%2.46%0.86%
LLYProProPro
JPMProProPro
WMTProProPro
JNJProProPro
VProProPro
XOMProProPro
LRCXProProPro
See all 10 holdings PFM shares with VTI
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, PFM or VTI?

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

Which performed better, PFM or VTI?

Over the past year PFM returned +18.00% vs +21.79% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (21 years), PFM annualized +7.11% vs +8.06% for VTI. Past performance does not guarantee future results.

Which is riskier, PFM or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 13.4% for PFM. Worst drawdown: PFM -54.7% vs VTI -56.6%.

Should I hold both PFM and VTI?

PFM and VTI have a monthly-return correlation of 0.92, 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 VTI?

PFM and VTI share 345 common holdings with a 38.9% weight overlap. Combined, they hold 2868 unique securities.

Which pays a higher dividend, PFM or VTI?

PFM yields 1.34% while VTI yields 1.07%, so PFM currently pays the higher dividend yield.

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