PHEQ vs VYM
PHEQ vs VYM
Parametric Hedged Equity 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 | PHEQ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.04% | |
| AUM | $137M | $79.0B | |
| Dividend Yield | 0.94% | 2.86% | |
| Holdings | 186 | 568 | |
| YTD Return | +7.07% | +15.20% | |
| 1Y Return | +12.93% | +25.56% | |
| 3Y Return (annualized) | - | +17.86% | |
| 5Y Return (annualized) | - | +12.35% | |
| Volatility (annualized) | 6.8% | 14.6% | |
| Max Drawdown | -12.6% | -58.8% | |
| Fund Family | Parametric | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 16, 2023 | Nov 10, 2006 |
PHEQ vs VYM Performance
Parametric Hedged Equity ETF (PHEQ) is a ETF from Parametric and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PHEQ returned +12.93% while VYM returned +25.56%. Year to date, PHEQ is up 7.07% versus a gain of 15.20% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 6.8% for PHEQ. 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 -12.6% for PHEQ 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PHEQ charges 0.29% per year while VYM charges 0.04%. On a $10,000 position that is $29 vs $4 annually, a gap of $25 per year that compounds over a long holding period. On income, PHEQ currently yields 0.94% against 2.86% for VYM.
Holdings Overlap
PHEQ and VYM share 63 holdings out of 668 unique holdings combined, representing a 28.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PHEQ | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 3.30% | 6.47% | 3.17% |
| JPM:US | 1.58% | 3.36% | 1.78% |
| XOM | 1.58% | 2.83% | 1.25% |
| JNJ | Pro | Pro | Pro |
| WMT | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
| ABBV | Pro | Pro | Pro |
| PG | Pro | Pro | Pro |
| CAT | Pro | Pro | Pro |
| CVX | Pro | Pro | Pro |
See all 10 holdings PHEQ shares with VYM Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, PHEQ or VYM?
PHEQ has an expense ratio of 0.29% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, PHEQ or VYM?
Over the past year PHEQ returned +12.93% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), PHEQ annualized +15.03% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, PHEQ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.8% for PHEQ. Worst drawdown: PHEQ -12.6% vs VYM -58.8%.
Should I hold both PHEQ and VYM?
PHEQ and VYM have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PHEQ and VYM?
PHEQ and VYM share 63 common holdings with a 28.1% weight overlap. Combined, they hold 668 unique securities.
Which pays a higher dividend, PHEQ or VYM?
PHEQ yields 0.94% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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