PALC vs VYM
Pacer Lunt Large Cap Multi-Factor Alternator ETF vs Vanguard High Dividend Yield ETF
Which is better, PALC or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. PALC led over the full window, VYM over 1Y, 3Y and 5Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 27.9%.
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 | PALC | VYM |
|---|---|---|
| Expense Ratio | 0.60% | 0.04%Best |
| AUM | $211M | $81.6B |
| Dividend Yield | 1.06% | 2.22% |
| Holdings | 184 | 613 |
| YTD Return | +6.52% | +11.47%Best |
| 1Y Return | +9.32% | +15.94%Best |
| 3Y Return (annualized) | +15.48% | +18.03%Best |
| 5Y Return (annualized) | +8.55% | +12.35%Best |
| Volatility (annualized) | 17.2% | 13.8%Best |
| Max Drawdown | -24.4% | -15.8%Best |
| $10,000 over 5 years | $15,071 | $17,901Best |
| Top 10 Weight | 27.9% | 26.1%Best |
| Fund Family | Pacer ETFs | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jun 24, 2020 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jun 25, 2020 to Sep 21, 2026 (6.2 years).
PALC 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 6.2 years both funds cover.
PALC vs VYM Performance
Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) is an ETF from Pacer ETFs and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year PALC returned +9.32% while VYM returned +15.94%. Year to date, PALC is up 6.52% versus a gain of 11.47% for VYM.
Over three years, PALC compounded at +15.48% per year against +18.03% for VYM; over five years the annualized figures are +8.55% and +12.35% respectively. Across the full 6-year window we track, PALC has the edge at +15.00% annualized vs +14.95%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PALC has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 13.8% for VYM. 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 -24.4% for PALC and -15.8% 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PALC charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, PALC currently yields 1.06% against 2.22% for VYM.
Holdings Overlap
70.3% of PALC's money is in holdings VYM also owns. 36.8% of VYM's money is in holdings PALC also owns.
Most of PALC is already inside VYM. Owning both mostly buys the same companies twice.
111 positions in common, counted across the 183 positions we hold weights for in PALC and 557 in VYM, against full books of 184 and 613.
What only one of them owns
Measured across the 183 and 557 positions we hold weights for.
VYM holds 417 positions PALC does not, 60.2% of the fund.
Largest: AVGO 7.35%, XOM 2.63%, JNJ 2.51%, CSCO 1.86%, UNH 1.52%
Top Shared Holdings
| Stock | Weight in PALC | Weight in VYM | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 2.73% | 3.82% | 1.09% |
| BACBank of America Corp.: Financials | 4.49% | 1.66% | 2.83% |
| ABBVAbbvie Inc. | 2.37% | 1.80% | 0.57% |
| WFCWells Fargo & Co. | 3.09% | 1.07% | 2.02% |
| CCitigroup Inc. | 3.03% | 0.89% | 2.14% |
| GSGoldman Sachs Group Inc/The | 2.36% | 1.13% | 1.23% |
| PMPhilip Morris International Inc. | 1.88% | 1.21% | 0.67% |
| CVXChevron Corp | 1.60% | 1.48% | 0.12% |
| TBBAt&t Inc | 2.37% | 0.64% | 1.73% |
| VZVerizon Communic | 2.07% | 0.80% | 1.27% |
70.3% of PALC is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PALC or VYM?
PALC has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option, by $56 a year on a $10,000 investment.
Which performed better, PALC or VYM?
Over the past year PALC returned +9.32% vs +15.94% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), PALC annualized +15.00% vs +14.95% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PALC or VYM?
PALC has been the more volatile fund at 17.2% annualized versus 13.8% for VYM. Worst drawdown: PALC -24.4% vs VYM -15.8%.
Should I hold both PALC and VYM?
PALC and VYM have a monthly-return correlation of 0.80, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PALC and VYM?
70.3% of PALC's money is in holdings VYM also owns. 36.8% of VYM's is in holdings PALC also owns. They hold 111 positions in common, counted across the 183 positions we hold weights for in PALC and 557 in VYM.
Which pays a higher dividend, PALC or VYM?
PALC yields 1.06% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than PALC?
VYM has a lower expense ratio. PALC led over the full window, VYM over 1Y, 3Y and 5Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 27.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.