PBDC vs VYM
Putnam BDC Income 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 | PBDC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 13.49% | 0.04% | |
| AUM | $314M | $81.6B | |
| Dividend Yield | 11.60% | 2.24% | |
| Holdings | 28 | 616 | |
| YTD Return | -4.44% | +15.75% | |
| 1Y Return | -7.27% | +23.85% | |
| 3Y Return (annualized) | +6.95% | +19.14% | |
| 5Y Return (annualized) | - | +12.45% | |
| Volatility (annualized) | 14.3% | 14.6% | |
| Max Drawdown | -20.5% | -58.8% | |
| Fund Family | Putnam Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 29, 2022 | Nov 10, 2006 |
PBDC vs VYM Performance
Putnam BDC Income ETF (PBDC) is a ETF from Putnam Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PBDC returned -7.27% while VYM returned +23.85%. Year to date, PBDC is down 4.44% versus a gain of 15.75% for VYM.
Over three years, PBDC compounded at +6.95% per year against +19.14% for VYM. Across the full 4-year window we track, PBDC has the edge at +13.43% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.3% for PBDC. 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 -20.5% for PBDC 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PBDC charges 13.49% per year while VYM charges 0.04%. On a $10,000 position that is $1349 vs $4 annually, a gap of $1345 per year that compounds over a long holding period. On income, PBDC currently yields 11.60% against 2.24% for VYM.
Holdings Overlap
PBDC and VYM share 0 holdings out of 626 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PBDC or VYM?
PBDC has an expense ratio of 13.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $1345 per year of difference.
Which performed better, PBDC or VYM?
Over the past year PBDC returned -7.27% vs +23.85% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), PBDC annualized +13.43% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, PBDC or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.3% for PBDC. Worst drawdown: PBDC -20.5% vs VYM -58.8%.
Should I hold both PBDC and VYM?
PBDC and VYM have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PBDC and VYM?
PBDC and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 626 unique securities.
Which pays a higher dividend, PBDC or VYM?
PBDC yields 11.60% while VYM yields 2.24%, so PBDC currently pays the higher dividend yield.
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