ARP 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

MetricARPVYMWinner
Expense Ratio1.42%0.04%
AUM$66M$79.0B
Dividend Yield6.15%2.86%
Holdings6568
YTD Return+11.17%+16.10%
1Y Return+24.52%+25.99%
3Y Return (annualized)+13.40%+18.29%
5Y Return (annualized)-+12.35%
Volatility (annualized)9.3%14.6%
Max Drawdown-10.1%-58.8%
Fund FamilyPMV CapitalVanguard (US)
CategoryAlternativeEquity
InceptionDec 21, 2022Nov 10, 2006

ARP vs VYM Performance

PMV Adaptive Risk Parity ETF (ARP) is a ETF from PMV Capital and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ARP returned +24.52% while VYM returned +25.99%. Year to date, ARP is up 11.17% versus a gain of 16.10% for VYM.

Over three years, ARP compounded at +13.40% per year against +18.29% for VYM. Across the full 4-year window we track, ARP has the edge at +11.23% annualized vs +7.08%. 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 9.3% for ARP. 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 -10.1% for ARP 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 0.72. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

ARP charges 1.42% per year while VYM charges 0.04%. On a $10,000 position that is $142 vs $4 annually, a gap of $138 per year that compounds over a long holding period. On income, ARP currently yields 6.15% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

ARP and VYM share 0 holdings out of 564 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, ARP or VYM?

ARP has an expense ratio of 1.42% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $138 per year of difference.

Which performed better, ARP or VYM?

Over the past year ARP returned +24.52% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), ARP annualized +11.23% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, ARP or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 9.3% for ARP. Worst drawdown: ARP -10.1% vs VYM -58.8%.

Should I hold both ARP and VYM?

ARP and VYM have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ARP and VYM?

ARP and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 564 unique securities.

Which pays a higher dividend, ARP or VYM?

ARP yields 6.15% while VYM yields 2.86%, so ARP currently pays the higher dividend yield.

Get Full ETF Analytics

Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.