LCOW vs VYM
Pacer S&P 500 Quality FCF Aristocrats 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 616 holdings.
Side-by-Side Comparison
| Metric | LCOW | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.04% | |
| AUM | $27M | $81.6B | |
| Dividend Yield | 0.62% | 2.24% | |
| Holdings | 103 | 616 | |
| YTD Return | +11.36% | +15.34% | |
| 1Y Return | +18.64% | +23.24% | |
| 3Y Return (annualized) | - | +19.22% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 11.1% | 14.6% | |
| Max Drawdown | -10.6% | -58.8% | |
| Fund Family | Pacer ETFs | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 6, 2025 | Nov 10, 2006 |
LCOW vs VYM Performance
Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW) is a ETF from Pacer ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year LCOW returned +18.64% while VYM returned +23.24%. Year to date, LCOW is up 11.36% versus a gain of 15.34% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 11.1% for LCOW. 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 -10.6% for LCOW 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LCOW charges 0.49% per year while VYM charges 0.04%. On a $10,000 position that is $49 vs $4 annually, a gap of $45 per year that compounds over a long holding period. On income, LCOW currently yields 0.62% against 2.24% for VYM.
Holdings Overlap
LCOW and VYM share 37 holdings out of 668 unique holdings combined, representing a 22.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LCOW or VYM?
LCOW has an expense ratio of 0.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, LCOW or VYM?
Over the past year LCOW returned +18.64% vs +23.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), LCOW annualized +24.94% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, LCOW or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 11.1% for LCOW. Worst drawdown: LCOW -10.6% vs VYM -58.8%.
Should I hold both LCOW and VYM?
LCOW and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LCOW and VYM?
LCOW and VYM share 37 common holdings with a 22.5% weight overlap. Combined, they hold 668 unique securities.
Which pays a higher dividend, LCOW or VYM?
LCOW yields 0.62% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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