PMO 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

MetricPMOVOOWinner
Expense Ratio1.02%0.03%
AUM$4,829$979.0B
Dividend Yield4.04%1.09%
Holdings288509
YTD Return+0.30%+13.80%
1Y Return+10.75%+23.71%
3Y Return (annualized)+5.92%+21.50%
5Y Return (annualized)-1.95%+13.44%
Volatility (annualized)11.5%14.1%
Max Drawdown-50.4%-34.3%
Fund FamilyPutnam InvestmentsVanguard (US)
CategoryTax PreferredEquity
InceptionMay 28, 1993Sep 7, 2010

PMO vs VOO Performance

Putnam Municipal Opportunities Trust (PMO) is a ETF from Putnam Investments and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PMO returned +10.75% while VOO returned +23.71%. Year to date, PMO is up 0.30% versus a gain of 13.80% for VOO.

Over three years, PMO compounded at +5.92% per year against +21.50% for VOO; over five years the annualized figures are -1.95% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs -0.05%. 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 11.5% for PMO. 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 -50.4% for PMO 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PMO charges 1.02% per year while VOO charges 0.03%. On a $10,000 position that is $102 vs $3 annually, a gap of $99 per year that compounds over a long holding period. On income, PMO currently yields 4.04% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

PMO and VOO share 0 holdings out of 615 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, PMO or VOO?

PMO has an expense ratio of 1.02% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $99 per year of difference.

Which performed better, PMO or VOO?

Over the past year PMO returned +10.75% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), PMO annualized -0.05% vs +13.58% for VOO. Past performance does not guarantee future results.

Which is riskier, PMO or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 11.5% for PMO. Worst drawdown: PMO -50.4% vs VOO -34.3%.

Should I hold both PMO and VOO?

PMO and VOO have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PMO and VOO?

PMO and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 615 unique securities.

Which pays a higher dividend, PMO or VOO?

PMO yields 4.04% while VOO yields 1.09%, so PMO currently pays the higher dividend yield.

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