PAI vs VYM
Western Asset Investment Grade Income Fund Inc. vs Vanguard High Dividend Yield ETF
Which is better, PAI or VYM?
Long Term Mid Quality against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PAI | VYM |
|---|---|---|
| Expense Ratio | 0.73% | 0.04%Best |
| AUM | $122M | $81.6B |
| Dividend Yield | 4.90% | 2.22% |
| Holdings | 476 | 613 |
| YTD Return | -3.78% | +12.87%Best |
| 1Y Return | -4.87% | +17.25%Best |
| 3Y Return (annualized) | +6.03% | +17.66%Best |
| 5Y Return (annualized) | -2.63% | +11.98%Best |
| Volatility (annualized) | 14.1%Best | 14.5% |
| Max Drawdown | -45.9%Best | -58.8% |
| $10,000 over 5 years | $8,752 | $17,608Best |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Value |
| Inception | Mar 22, 1973 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 15, 2026 (19.8 years).
PAI vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.8 years both funds cover.
PAI vs VYM Performance
Western Asset Investment Grade Income Fund Inc. (PAI) is an ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year PAI returned -4.87% while VYM returned +17.25%. Year to date, PAI is down 3.78% versus a gain of 12.87% for VYM.
Over three years, PAI compounded at +6.03% per year against +17.66% for VYM; over five years the annualized figures are -2.63% and +11.98% respectively. Across the full 20-year window we track, VYM has the edge at +6.90% annualized vs +0.06%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 14.1% for PAI. 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 -45.9% for PAI and -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.39. They move together some of the time, and apart the rest.
Fees and Cost Over Time
PAI charges 0.73% per year while VYM charges 0.04%. On a $10,000 position that is $73 vs $4 annually, a gap of $69 per year that compounds over a long holding period. On income, PAI currently yields 4.90% against 2.22% for VYM.
Holdings Overlap
At least 0.9% of VYM's money is in holdings PAI also owns.
Stated as a floor: for PAI, our book for it covers 1.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 7 positions we hold weights for in PAI and 557 in VYM, against full books of 476 and 613.
Top Shared Holdings
| Stock | Weight in PAI | Weight in VYM | Difference |
|---|---|---|---|
| CCitigroup Inc. | 0.34% | 0.89% | 0.55% |
You are not choosing between two funds in isolation.
Whichever of PAI and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PAI or VYM?
PAI has an expense ratio of 0.73% while VYM charges 0.04%. VYM is the cheaper option, by $69 a year on a $10,000 investment.
Which performed better, PAI or VYM?
Over the past year PAI returned -4.87% vs +17.25% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PAI annualized +0.06% vs +6.90% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PAI or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 14.1% for PAI. Worst drawdown: PAI -45.9% vs VYM -58.8%.
Should I hold both PAI and VYM?
PAI and VYM have a monthly-return correlation of 0.39, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, PAI or VYM?
PAI yields 4.90% while VYM yields 2.22%, so PAI currently pays the higher dividend yield.
Is VYM better than PAI?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.