PABD vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricPABDVYMWinner
Expense Ratio0.12%0.04%
AUM$327M$79.0B
Dividend Yield3.02%2.86%
Holdings432568
YTD Return+10.67%+15.45%
1Y Return+22.92%+26.05%
3Y Return (annualized)-+17.96%
5Y Return (annualized)-+12.54%
Volatility (annualized)12.0%14.6%
Max Drawdown-12.7%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionJan 17, 2024Nov 10, 2006

PABD vs VYM Performance

iShares Paris-Aligned Climate Optimized MSCI World ex USA ETF (PABD) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PABD returned +22.92% while VYM returned +26.05%. Year to date, PABD is up 10.67% versus a gain of 15.45% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 12.0% for PABD. 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 -12.7% for PABD 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PABD charges 0.12% per year while VYM charges 0.04%. On a $10,000 position that is $12 vs $4 annually, a gap of $8 per year that compounds over a long holding period. On income, PABD currently yields 3.02% against 2.86% for VYM.

Holdings Overlap

0.3%overlap

PABD and VYM share 2 holdings out of 960 unique holdings combined, representing a 0.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PABDWeight in VYMDifference
MRK0.14%1.37%1.23%
DG0.56%0.15%0.41%

Frequently Asked Questions

Which is cheaper, PABD or VYM?

PABD has an expense ratio of 0.12% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $8 per year of difference.

Which performed better, PABD or VYM?

Over the past year PABD returned +22.92% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), PABD annualized +19.93% vs +7.06% for VYM. Past performance does not guarantee future results.

Which is riskier, PABD or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 12.0% for PABD. Worst drawdown: PABD -12.7% vs VYM -58.8%.

Should I hold both PABD and VYM?

PABD and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PABD and VYM?

PABD and VYM share 2 common holdings with a 0.3% weight overlap. Combined, they hold 960 unique securities.

Which pays a higher dividend, PABD or VYM?

PABD yields 3.02% while VYM yields 2.86%, so PABD currently pays the higher dividend yield.

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