PAB vs VYM
PAB vs VYM
PGIM Active Aggregate Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | PAB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.04% | |
| AUM | $70M | $79.0B | |
| Dividend Yield | 5.30% | 2.86% | |
| Holdings | 522 | 568 | |
| YTD Return | -0.16% | +15.20% | |
| 1Y Return | +2.45% | +25.56% | |
| 3Y Return (annualized) | +4.57% | +17.86% | |
| 5Y Return (annualized) | -0.16% | +12.35% | |
| Volatility (annualized) | 6.4% | 14.6% | |
| Max Drawdown | -19.3% | -58.8% | |
| Fund Family | PGIM Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 12, 2021 | Nov 10, 2006 |
PAB vs VYM Performance
PGIM Active Aggregate Bond ETF (PAB) is a ETF from PGIM Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PAB returned +2.45% while VYM returned +25.56%. Year to date, PAB is down 0.16% versus a gain of 15.20% for VYM.
Over three years, PAB compounded at +4.57% per year against +17.86% for VYM; over five years the annualized figures are -0.16% and +12.35% respectively. Across the full 5-year window we track, VYM has the edge at +7.05% annualized vs +0.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 6.4% for PAB. 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 -19.3% for PAB and -58.8% for VYM. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PAB charges 0.19% per year while VYM charges 0.04%. On a $10,000 position that is $19 vs $4 annually, a gap of $15 per year that compounds over a long holding period. On income, PAB currently yields 5.30% against 2.86% for VYM.
Holdings Overlap
PAB and VYM share 0 holdings out of 968 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, PAB or VYM?
PAB has an expense ratio of 0.19% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, PAB or VYM?
Over the past year PAB returned +2.45% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), PAB annualized +0.12% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, PAB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.4% for PAB. Worst drawdown: PAB -19.3% vs VYM -58.8%.
Should I hold both PAB and VYM?
PAB and VYM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PAB and VYM?
PAB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 968 unique securities.
Which pays a higher dividend, PAB or VYM?
PAB yields 5.30% while VYM yields 2.86%, so PAB currently pays the higher dividend yield.
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