PBDIX vs YLDE Fund Comparison

A comparison between PBDIX and YLDE based on their expense ratio, growth, holdings and how well they match their benchmark performance.

Group Created with Sketch.

Minafi's Take on PBDIX vs YLDE

Here's an in depth look at the differences between T. Rowe Price U.S. Bond Enhanced Index Fund ($PBDIX) and ClearBridge Dividend Strategy ESG ETF ($YLDE).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

75% FI Score
  • pbdix
  • Mutual Fund
  • Bond
  • Total US Bond Market

T. Rowe Price U.S. Bond Enhanced Index Fund

Expenses: 0.30% (Better than 1% of similar funds)

This is an OK choice for a Total US Bond Market Bond fund. See why »

37% FI Score
  • ylde
  • ETF
  • US Stocks
  • Large Blend

ClearBridge Dividend Strategy ESG ETF

Expenses: 0.60% (Better than 1% of similar funds)

This is a bad choice for a Large Blend US Stocks fund. See why »

$PBDIX is classified as a Mutual Fund while $YLDE is classified as an ETF. Even though one of these is a mutual fund and the other is an ETF, that doesn't matter too much for their holdings. Both ETFs and mutual funds are just containers to hold lots of investments inside of them.

The biggest differences between these two is where they may be offered. ETFs are more widely availble from a larger number of investment apps and websites. Mutual funds, on the other hand, are generally offered by the platform they're issued by (Fidelity funds on Fidelity, Vanguard funds on Vanguard). Usually 401(k)'s will offer both ETFs and Mutual Funds. If you're investing outside of a 401(k), I'd recommend you verify the fees associated with ETF and mutual fund transactions. Some platforms charge an additional fee to purchase a mutual fund.

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

PBDIX YLDE
Market Score 6.0 /10 0.4 /10
Category Score 10.0 /10 10.0 /10
Total 16.0 10.4

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $PBDIX

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, PBDIX has an expense ratio of 0.30% while YLDE has an expense ratio of 0.60%.

Winner: $PBDIX

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, PBDIX is a medium fund with 1.36 Billion in assets under management. YLDE, on the other hand, is a small fund with 7.5 Million in assets under management.

Winner: $PBDIX, T. Rowe Price U.S. Bond Enhanced Index Fund

Which Should You Choose? PBDIX or YLDE?

Comparing these two funds isn't an apples to apples comparison. PBDIX is a Bond Total US Bond Market fund, while YLDE is a US Stocks Large Blend fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives PBDIX a score of 75 and YLDE a score of 37.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$PBDIX

T. Rowe Price U.S. Bond Enhanced Index Fund

75

Read More
Ratings
Rating Type Rating
Expense Ratio Score 9 /10
Expense Rating 7 /10
Market Score 6 /10
Category Score 10 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Nov-30-2000
Exchange NMFQS
Expense Ratio 0.300%
Net Assets 1.36 Billion
Yield 2.65%
Holdings
Description Info
Market Bond
Category Total US Bond Market
Sectors
  • Agency MBS ARM 0.02%
  • Agency MBS CMO 0.80%
  • Agency MBS Pass-Through 29.39%
  • Asset-Backed 4.55%
  • Bank Loan 0.00%
  • Cash & Equivalents 3.31%
  • Commercial MBS 2.84%
  • Convertible 0.94%
  • Corporate 30.77%
  • Corporate Bond 29.83%
  • Covered Bond 0.00%
  • Government 23.85%
  • Municipal 2.67%
  • Non-Agency Residential MBS 1.81%
  • Non-U.S. Government 0.23%
  • Other -0.01%
  • Other Government Related 0.87%
  • Preferred 0.00%
  • Securitized 39.41%
  • U.S. Agency 0.10%
  • U.S. Treasury 22.65%
  • U.S. Treasury Inflation-Protected 0.00%

$YLDE

ClearBridge Dividend Strategy ESG ETF

37

Read More
Ratings
Rating Type Rating
Diversification Score 2 /10
Expense Ratio Score 7 /10
Expense Rating 4 /10
Market Score 0 /10
Category Score 10 /10
Overview
Overview Details
Fund Type ETF
Exchange NASDAQ
Expense Ratio 0.600%
Net Assets 7.5 Million
Yield 1.78%
Holdings
Description Info
Market US Stocks
Category Large Blend
Sectors
  • Basic Materials 10.60%
  • Communication Services 6.90%
  • Consumer Cyclicals 5.57%
  • Consumer Defensive 13.15%
  • Energy 4.10%
  • Financial Services 16.84%
  • Healthcare 10.37%
  • Industrials 9.56%
  • Real Estate 3.62%
  • Technology 13.49%
  • Utilities 5.80%
Regions
  • Europe Developed 2.59%
  • North America 93.63%
  • United Kingdom 3.77%

Adam says: Learn how to confidently invest for retirement!

Join the Minafi Investor Bootcamp to see how.

This 10-course bootcamp starts at only $10 for everything!

Minafi - The intersection of FI, minimalism & mindfulness.

Don't miss out on new posts, courses, interactive articles and more!

Join & Get Your First Course Free

© 2024   Adam Fortuna

Site Map
Triangle Graduation Cap Angle Down Book regular Phone laptop regular fire regular fire regular search regular Acorn duotone Seedling duotone thumbs down duo