PMBS 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

MetricPMBSVOOWinner
Expense Ratio0.71%0.03%
AUM$1.4B$979.0B
Dividend Yield4.97%1.09%
Holdings1,126509
YTD Return-0.04%+9.95%
1Y Return+4.49%+19.58%
3Y Return (annualized)-+19.43%
5Y Return (annualized)-+12.89%
Volatility (annualized)4.5%14.2%
Max Drawdown-3.1%-34.3%
Fund FamilyPIMCO (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionSep 20, 2024Sep 7, 2010

PMBS vs VOO Performance

PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) is a ETF from PIMCO (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PMBS returned +4.49% while VOO returned +19.58%. Year to date, PMBS is down 0.04% versus a gain of 9.95% for VOO.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 4.5% for PMBS. 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 -3.1% for PMBS 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PMBS charges 0.71% per year while VOO charges 0.03%. On a $10,000 position that is $71 vs $3 annually, a gap of $68 per year that compounds over a long holding period. On income, PMBS currently yields 4.97% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

PMBS and VOO share 0 holdings out of 648 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, PMBS or VOO?

PMBS has an expense ratio of 0.71% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $68 per year of difference.

Which performed better, PMBS or VOO?

Over the past year PMBS returned +4.49% vs +19.58% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (2 years), PMBS annualized +5.02% vs +13.35% for VOO. Past performance does not guarantee future results.

Which is riskier, PMBS or VOO?

VOO has been the more volatile fund at 14.2% annualized versus 4.5% for PMBS. Worst drawdown: PMBS -3.1% vs VOO -34.3%.

Should I hold both PMBS and VOO?

PMBS and VOO have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PMBS and VOO?

PMBS and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 648 unique securities.

Which pays a higher dividend, PMBS or VOO?

PMBS yields 4.97% while VOO yields 1.09%, so PMBS currently pays the higher dividend yield.

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