PHYL vs VYM
PHYL vs VYM
PGIM Active High Yield Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. PHYL offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | PHYL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.04% | |
| AUM | $1.4B | $79.0B | |
| Dividend Yield | 8.24% | 2.86% | |
| Holdings | 804 | 568 | |
| YTD Return | +1.71% | +13.82% | |
| 1Y Return | +4.91% | +24.08% | |
| 3Y Return (annualized) | +8.40% | +17.72% | |
| 5Y Return (annualized) | +3.82% | +12.13% | |
| Volatility (annualized) | 8.7% | 14.6% | |
| Max Drawdown | -23.5% | -58.8% | |
| Fund Family | PGIM Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 24, 2018 | Nov 10, 2006 |
PHYL vs VYM Performance
PGIM Active High Yield Bond ETF (PHYL) is a ETF from PGIM Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PHYL returned +4.91% while VYM returned +24.08%. Year to date, PHYL is up 1.71% versus a gain of 13.82% for VYM.
Over three years, PHYL compounded at +8.40% per year against +17.72% for VYM; over five years the annualized figures are +3.82% and +12.13% respectively. Across the full 8-year window we track, VYM has the edge at +6.98% annualized vs +3.02%. 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 8.7% for PHYL. 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 -23.5% for PHYL 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PHYL charges 0.39% per year while VYM charges 0.04%. On a $10,000 position that is $39 vs $4 annually, a gap of $35 per year that compounds over a long holding period. On income, PHYL currently yields 8.24% against 2.86% for VYM.
Holdings Overlap
PHYL and VYM share 3 holdings out of 1171 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, PHYL or VYM?
PHYL has an expense ratio of 0.39% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, PHYL or VYM?
Over the past year PHYL returned +4.91% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), PHYL annualized +3.02% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, PHYL or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.7% for PHYL. Worst drawdown: PHYL -23.5% vs VYM -58.8%.
Should I hold both PHYL and VYM?
PHYL and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PHYL and VYM?
PHYL and VYM share 3 common holdings with a 0.0% weight overlap. Combined, they hold 1171 unique securities.
Which pays a higher dividend, PHYL or VYM?
PHYL yields 8.24% while VYM yields 2.86%, so PHYL currently pays the higher dividend yield.
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