Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both MO and PM fall intoTier 3: Specialty. This suggests they share a similar risk profile and volatility expectation.
| Metric | MO | PM |
|---|---|---|
| Total Return (1Y) | 15.26% | 18.26% |
| NAV Change (1Y) | 9.36% | 8.71% |
| Max Drawdown | -22.06% | -21.96% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
MO (Altria Group) is a sector-specific income fund managed by institutional managers. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Concentrates on sector-specific opportunities, typically REITs, MLPs, or BDCs with higher baseline yields.
PM (Philip Morris Intl) is a sector-specific income fund managed by institutional managers. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Concentrates on sector-specific opportunities, typically REITs, MLPs, or BDCs with higher baseline yields.
In the head-to-head battle of MO vs PM, the choice depends on your specific goal. PM wins for Immediate Income with a 9.55% yield. However, PM is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
MO
Annual Yield: 5.90%
$492/mo
($5,899/year)
Frequency: quarterly
PM
Annual Yield: 9.55%
$796/mo
($9,548/year)
Frequency: quarterly
Income Gap: PM generates $3,649/year more than MO on the same $100k investment.
Over 20 years, that's $72,976 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. PM has delivered a superior Total Return of 18.26% over the past year.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.