PFM 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

MetricPFMVYMWinner
Expense Ratio0.52%0.04%
AUM$792M$79.0B
Dividend Yield1.34%2.86%
Holdings433568
YTD Return+12.00%+15.20%
1Y Return+19.61%+25.56%
3Y Return (annualized)+15.98%+17.86%
5Y Return (annualized)+10.92%+12.35%
Volatility (annualized)13.4%14.6%
Max Drawdown-54.7%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
InceptionSep 15, 2005Nov 10, 2006

PFM vs VYM Performance

Invesco Dividend Achievers ETF (PFM) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PFM returned +19.61% while VYM returned +25.56%. Year to date, PFM is up 12.00% versus a gain of 15.20% for VYM.

Over three years, PFM compounded at +15.98% per year against +17.86% for VYM; over five years the annualized figures are +10.92% and +12.35% respectively. Across the full 20-year window we track, PFM has the edge at +7.19% annualized vs +7.05%. 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 13.4% for PFM. 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 -54.7% for PFM 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

PFM charges 0.52% per year while VYM charges 0.04%. On a $10,000 position that is $52 vs $4 annually, a gap of $48 per year that compounds over a long holding period. On income, PFM currently yields 1.34% against 2.86% for VYM.

Holdings Overlap

58.9%overlap

PFM and VYM share 234 holdings out of 754 unique holdings combined, representing a 58.9% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in PFMWeight in VYMDifference
AVGO3.32%6.47%3.15%
JPM:US3.23%3.36%0.13%
WMT3.34%2.44%0.90%
JNJProProPro
XOMProProPro
ABBVProProPro
CATProProPro
CSCOProProPro
PGProProPro
HDProProPro
See all 10 holdings PFM shares with VYM
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, PFM or VYM?

PFM has an expense ratio of 0.52% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $48 per year of difference.

Which performed better, PFM or VYM?

Over the past year PFM returned +19.61% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PFM annualized +7.19% vs +7.05% for VYM. Past performance does not guarantee future results.

Which is riskier, PFM or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 13.4% for PFM. Worst drawdown: PFM -54.7% vs VYM -58.8%.

Should I hold both PFM and VYM?

PFM and VYM have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between PFM and VYM?

PFM and VYM share 234 common holdings with a 58.9% weight overlap. Combined, they hold 754 unique securities.

Which pays a higher dividend, PFM or VYM?

PFM yields 1.34% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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