PALC vs VYM
Pacer Lunt Large Cap Multi-Factor Alternator 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 | PALC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $211M | $79.0B | |
| Dividend Yield | 1.02% | 2.86% | |
| Holdings | 181 | 568 | |
| YTD Return | +10.76% | +16.16% | |
| 1Y Return | +16.29% | +26.05% | |
| 3Y Return (annualized) | +15.66% | +18.43% | |
| 5Y Return (annualized) | +8.92% | +12.21% | |
| Volatility (annualized) | 17.3% | 14.6% | |
| Max Drawdown | -24.4% | -58.8% | |
| Fund Family | Pacer ETFs | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 24, 2020 | Nov 10, 2006 |
PALC vs VYM Performance
Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) is a ETF from Pacer ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PALC returned +16.29% while VYM returned +26.05%. Year to date, PALC is up 10.76% versus a gain of 16.16% for VYM.
Over three years, PALC compounded at +15.66% per year against +18.43% for VYM; over five years the annualized figures are +8.92% and +12.21% respectively. Across the full 6-year window we track, PALC has the edge at +16.03% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PALC has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 14.6% 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 -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 0.80. 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 1.02% against 2.86% for VYM.
Holdings Overlap
PALC and VYM share 58 holdings out of 678 unique holdings combined, representing a 15.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $56 per year of difference.
Which performed better, PALC or VYM?
Over the past year PALC returned +16.29% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), PALC annualized +16.03% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, PALC or VYM?
PALC has been the more volatile fund at 17.3% annualized versus 14.6% for VYM. Worst drawdown: PALC -24.4% vs VYM -58.8%.
Should I hold both PALC and VYM?
PALC and VYM have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PALC and VYM?
PALC and VYM share 58 common holdings with a 15.0% weight overlap. Combined, they hold 678 unique securities.
Which pays a higher dividend, PALC or VYM?
PALC yields 1.02% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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