PSQO vs VYM
PSQO vs VYM
Palmer Square Credit Opportunities 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 | PSQO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.52% | 0.04% | |
| AUM | $271M | $79.0B | |
| Dividend Yield | 4.41% | 2.86% | |
| Holdings | 359 | 568 | |
| YTD Return | +2.35% | +13.24% | |
| 1Y Return | +5.39% | +23.76% | |
| 3Y Return (annualized) | - | +16.97% | |
| 5Y Return (annualized) | - | +12.26% | |
| Volatility (annualized) | 1.1% | 14.6% | |
| Max Drawdown | -0.8% | -58.8% | |
| Fund Family | Palmer Square Capital Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 11, 2024 | Nov 10, 2006 |
PSQO vs VYM Performance
Palmer Square Credit Opportunities ETF (PSQO) is a ETF from Palmer Square Capital Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PSQO returned +5.39% while VYM returned +23.76%. Year to date, PSQO is up 2.35% versus a gain of 13.24% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 1.1% for PSQO. 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 -0.8% for PSQO 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSQO 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, PSQO currently yields 4.41% against 2.86% for VYM.
Holdings Overlap
PSQO and VYM share 1 holdings out of 755 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PSQO | Weight in VYM | Difference |
|---|---|---|---|
| KDP | 0.29% | 0.17% | 0.12% |
Frequently Asked Questions
Which is cheaper, PSQO or VYM?
PSQO 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, PSQO or VYM?
Over the past year PSQO returned +5.39% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), PSQO annualized +6.07% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, PSQO or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.1% for PSQO. Worst drawdown: PSQO -0.8% vs VYM -58.8%.
Should I hold both PSQO and VYM?
PSQO and VYM have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSQO and VYM?
PSQO and VYM share 1 common holdings with a 0.2% weight overlap. Combined, they hold 755 unique securities.
Which pays a higher dividend, PSQO or VYM?
PSQO yields 4.41% while VYM yields 2.86%, so PSQO currently pays the higher dividend yield.
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