PAVE vs VYM

PAVE vs VYM

Which is better, PAVE or VYM?

Mid Cap Blend against Large Cap Value.

VYM has a lower expense ratio. PAVE led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 31.7%.

Lower Fees: VYMHigher Returns: splitLess Concentrated: VYM

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

MetricPAVEVYM
Expense Ratio0.47%0.04%Best
AUM$13.3B$81.6B
Dividend Yield0.55%2.22%
Holdings102613
YTD Return+8.41%+11.35%Best
1Y Return+12.78%+15.34%Best
3Y Return (annualized)+20.17%Best+17.22%
5Y Return (annualized)+16.42%Best+12.30%
Volatility (annualized)22.8%14.6%Best
Max Drawdown-44.1%-35.7%Best
$10,000 over 5 years$21,386Best$17,861
Top 10 Weight31.7%26.1%Best
Fund FamilyGlobal X by mirae AssetVanguard (US)
CategoryEquityEquity
StyleMid Cap BlendLarge Cap Value
InceptionMar 6, 2017Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Mar 8, 2017 to Sep 18, 2026 (9.5 years).

PAVE 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 9.5 years both funds cover.

PAVE vs VYM Performance

Global X US Infrastructure Development ETF (PAVE) is an ETF from Global X by mirae Asset and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year PAVE returned +12.78% while VYM returned +15.34%. Year to date, PAVE is up 8.41% versus a gain of 11.35% for VYM.

Over three years, PAVE compounded at +20.17% per year against +17.22% for VYM; over five years the annualized figures are +16.42% and +12.30% respectively. Across the full 10-year window we track, PAVE has the edge at +14.98% annualized vs +9.55%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PAVE has been the more volatile fund, with annualized monthly volatility of 22.8% 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 -44.1% for PAVE and -35.7% 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 0.87. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PAVE charges 0.47% per year while VYM charges 0.04%. On a $10,000 position that is $47 vs $4 annually, a gap of $43 per year that compounds over a long holding period. On income, PAVE currently yields 0.55% against 2.22% for VYM.

Holdings Overlap

PAVE already in VYM34.0%
VYM already in PAVE3.6%

34.0% of PAVE's money is in holdings VYM also owns. 3.6% of VYM's money is in holdings PAVE also owns.

The two portfolios partly overlap.

19 positions in common, counted across the 100 positions we hold weights for in PAVE and 557 in VYM, against full books of 102 and 613.

What only one of them owns

Our book lists 510 positions for VYM that do not appear in our book for PAVE (93.8% of the fund), and 79 for PAVE that do not appear in VYM (64.2%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in PAVEWeight in VYMDifference
UNPUnion Pacific Corp3.05%0.70%2.35%
ETNEaton Corp Plc3.01%0.65%2.36%
FASTFastenal Co.3.38%0.22%3.16%
EMREmerson Electric Co.3.26%0.34%2.92%
NUENucor Corp.3.34%0.23%3.11%
NSCNorfolk Southern Corp3.05%0.31%2.74%
CRH:LNCrh Plc Shs2.98%0.26%2.72%
ROKRockwell Automation2.90%0.22%2.68%
SRESempra Common Stock2.88%0.24%2.64%
HUBBHubbell Inc1.40%0.10%1.30%

34.0% of PAVE 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.

PAVEVYM

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Frequently Asked Questions

Which is cheaper, PAVE or VYM?

PAVE has an expense ratio of 0.47% while VYM charges 0.04%. VYM is the cheaper option, by $43 a year on a $10,000 investment.

Which performed better, PAVE or VYM?

Over the past year PAVE returned +12.78% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), PAVE annualized +14.98% vs +9.55% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PAVE or VYM?

PAVE has been the more volatile fund at 22.8% annualized versus 14.6% for VYM. Worst drawdown: PAVE -44.1% vs VYM -35.7%.

Should I hold both PAVE and VYM?

PAVE and VYM have a monthly-return correlation of 0.87, 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 PAVE and VYM?

34.0% of PAVE's money is in holdings VYM also owns. 3.6% of VYM's is in holdings PAVE also owns. They hold 19 positions in common, counted across the 100 positions we hold weights for in PAVE and 557 in VYM.

Which pays a higher dividend, PAVE or VYM?

PAVE yields 0.55% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.

Is VYM better than PAVE?

VYM has a lower expense ratio. PAVE led over 3Y, 5Y and the full window, VYM over 1Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 31.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.