PMBS vs VYM
PMBS vs VYM
PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund 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 | PMBS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.04% | |
| AUM | $1.4B | $79.0B | |
| Dividend Yield | 4.97% | 2.86% | |
| Holdings | 1,126 | 568 | |
| YTD Return | +0.38% | +15.57% | |
| 1Y Return | +3.91% | +25.99% | |
| 3Y Return (annualized) | - | +18.02% | |
| 5Y Return (annualized) | - | +12.71% | |
| Volatility (annualized) | 4.4% | 14.6% | |
| Max Drawdown | -3.1% | -58.8% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 20, 2024 | Nov 10, 2006 |
PMBS vs VYM Performance
PIMCO Mortgage-Backed Securities Active Exchange-Traded Fund (PMBS) is a ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PMBS returned +3.91% while VYM returned +25.99%. Year to date, PMBS is up 0.38% versus a gain of 15.57% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 4.4% for PMBS. 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 -3.1% for PMBS 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PMBS charges 0.71% per year while VYM charges 0.04%. On a $10,000 position that is $71 vs $4 annually, a gap of $67 per year that compounds over a long holding period. On income, PMBS currently yields 4.97% against 2.86% for VYM.
Holdings Overlap
PMBS and VYM share 0 holdings out of 701 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, PMBS or VYM?
PMBS has an expense ratio of 0.71% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, PMBS or VYM?
Over the past year PMBS returned +3.91% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), PMBS annualized +5.23% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, PMBS or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.4% for PMBS. Worst drawdown: PMBS -3.1% vs VYM -58.8%.
Should I hold both PMBS and VYM?
PMBS and VYM have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PMBS and VYM?
PMBS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 701 unique securities.
Which pays a higher dividend, PMBS or VYM?
PMBS yields 4.97% while VYM yields 2.86%, so PMBS currently pays the higher dividend yield.
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