PALDX vs. VOO

Last updated Jun 23, 2026

PALDX (PGIM 60/40 Allocation Fund) and VOO (Vanguard S&P 500 ETF) are both funds - PALDX is a Diversified Portfolio fund managed by PGIM, while VOO is a S&P 500 fund tracking the S&P 500 Index. Over the past 5 years, PALDX returned 9.57%/yr vs 13.58%/yr for VOO. Their correlation of 0.94 suggests significant overlap in exposure. Both charge a 0.03% expense ratio.

Performance

PALDX vs. VOO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM 60/40 Allocation Fund (PALDX) and Vanguard S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PALDX achieves a 7.39% return, which is significantly lower than VOO's 9.75% return.

PALDX

• 1D: 0.60%
• 1M: 0.94%
• YTD: 7.39%
• 6M: 7.16%
• 1Y: 20.27%
• 3Y*: 16.07%
• 5Y*: 9.57%
• 10Y*: —

VOO

• 1D: -0.29%
• 1M: 0.08%
• YTD: 9.75%
• 6M: 9.30%
• 1Y: 26.77%
• 3Y*: 21.36%
• 5Y*: 13.58%
• 10Y*: 15.77%

*Multi-year figures are annualized to reflect compound growth (CAGR)

PALDX vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PALDX PGIM 60/40 Allocation Fund	7.39%	13.62%	18.96%	18.90%	-15.65%	16.30%	10.68%	22.27%	-4.12%	5.95%
VOO Vanguard S&P 500 ETF	9.75%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	7.85%

Correlation

The correlation between PALDX and VOO is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Sep 13, 2017	0.94

The correlation between PALDX and VOO has been stable across timeframes, ranging from 0.94 to 0.97 - a consistent structural relationship.

Return for Risk

PALDX vs. VOO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PALDX

PALDX Risk / Return Rank: 81
PALDX Sharpe Ratio Rank: 80
PALDX Sortino Ratio Rank: 79
PALDX Omega Ratio Rank: 77
PALDX Calmar Ratio Rank: 79
PALDX Martin Ratio Rank: 88

VOO

VOO Risk / Return Rank: 68
VOO Sharpe Ratio Rank: 70
VOO Sortino Ratio Rank: 67
VOO Omega Ratio Rank: 69
VOO Calmar Ratio Rank: 63
VOO Martin Ratio Rank: 74

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PALDX vs. VOO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM 60/40 Allocation Fund (PALDX) and Vanguard S&P 500 ETF (VOO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	PALDX	VOO	Difference
Sharpe ratio: Return per unit of total volatility	2.43	2.17	+0.26
Sortino ratio: Return per unit of downside risk	3.45	2.93	+0.52
Omega ratio: Gain probability vs. loss probability	1.46	1.39	+0.06
Calmar ratio: Return relative to maximum drawdown	3.40	3.02	+0.38
Martin ratio: Return relative to average drawdown	15.74	13.58	+2.16

PALDX vs. VOO - Sharpe Ratio Comparison

The current PALDX Sharpe Ratio is 2.43, which is comparable to the VOO Sharpe Ratio of 2.17. The chart below compares the historical Sharpe Ratios of PALDX and VOO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

PALDX vs. VOO - Drawdown Comparison

The maximum PALDX drawdown since its inception was -26.16%, smaller than the maximum VOO drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for PALDX and VOO.

Drawdown Indicators

	PALDX	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-26.16%	-33.99%	+7.83%
Max Drawdown (1Y) Largest decline over 1 year	-5.96%	-8.90%	+2.94%
Max Drawdown (3Y) Largest decline over 3 years	-16.06%	-18.69%	+2.63%
Max Drawdown (5Y) Largest decline over 5 years	-20.47%	-24.52%	+4.05%
Max Drawdown (10Y) Largest decline over 10 years	—	-33.99%	—
Current Drawdown Current decline from peak	-0.46%	-1.74%	+1.28%
Average Drawdown Average peak-to-trough decline	-4.07%	-3.68%	-0.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.29%	1.98%	-0.69%

Volatility

PALDX vs. VOO - Volatility Comparison

The current volatility for PGIM 60/40 Allocation Fund (PALDX) is 3.29%, while Vanguard S&P 500 ETF (VOO) has a volatility of 4.60%. This indicates that PALDX experiences smaller price fluctuations and is considered to be less risky than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PALDX	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.29%	4.60%	-1.31%
Volatility (6M) Calculated over the trailing 6-month period	6.78%	9.73%	-2.95%
Volatility (1Y) Calculated over the trailing 1-year period	8.34%	12.39%	-4.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.17%	16.90%	-4.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.70%	18.05%	-5.35%

PALDX vs. VOO - Expense Ratio Comparison

Both PALDX and VOO have an expense ratio of 0.03%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

PALDX vs. VOO - Dividend Comparison

PALDX's dividend yield for the trailing twelve months is around 5.05%, more than VOO's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PALDX PGIM 60/40 Allocation Fund	5.05%	5.42%	10.40%	2.94%	6.19%	6.87%	2.58%	4.58%	3.65%	1.48%	0.00%	0.00%
VOO Vanguard S&P 500 ETF	1.04%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both PALDX and VOO in my portfolio?

With a correlation of 0.97, PALDX and VOO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, PALDX or VOO?

VOO has higher volatility (4.60%) compared to PALDX (3.29%). In terms of maximum drawdown, PALDX dropped -26.16% vs VOO's -33.99%.

Which has better risk-adjusted returns?

PALDX currently has the higher Sharpe Ratio (2.43 vs 2.17), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.