PBE vs VYM

Quick Verdict

VYM has a lower expense ratio. PBE delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: PBEMore Diversified: VYM

Side-by-Side Comparison

MetricPBEVYMWinner
Expense Ratio0.58%0.04%
AUM$283M$79.0B
Dividend Yield1.73%2.86%
Holdings33568
YTD Return+15.19%+16.10%
1Y Return+47.27%+25.99%
3Y Return (annualized)+15.54%+18.29%
5Y Return (annualized)+4.86%+12.35%
Volatility (annualized)21.2%14.6%
Max Drawdown-45.7%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
InceptionJun 23, 2005Nov 10, 2006

PBE vs VYM Performance

Invesco Biotechnology and Genome ETF (PBE) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PBE returned +47.27% while VYM returned +25.99%. Year to date, PBE is up 15.19% versus a gain of 16.10% for VYM.

Over three years, PBE compounded at +15.54% per year against +18.29% for VYM; over five years the annualized figures are +4.86% and +12.35% respectively. Across the full 20-year window we track, PBE has the edge at +9.27% annualized vs +7.08%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PBE has been the more volatile fund, with annualized monthly volatility of 21.2% 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 -45.7% for PBE 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PBE charges 0.58% per year while VYM charges 0.04%. On a $10,000 position that is $58 vs $4 annually, a gap of $54 per year that compounds over a long holding period. On income, PBE currently yields 1.73% against 2.86% for VYM.

Holdings Overlap

1.6%overlap

PBE and VYM share 2 holdings out of 587 unique holdings combined, representing a 1.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PBEWeight in VYMDifference
AMGN4.86%0.84%4.02%
GILD4.28%0.81%3.47%

Frequently Asked Questions

Which is cheaper, PBE or VYM?

PBE has an expense ratio of 0.58% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $54 per year of difference.

Which performed better, PBE or VYM?

Over the past year PBE returned +47.27% vs +25.99% for VYM, so PBE leads on 1-year performance. Over the longest common window we track (20 years), PBE annualized +9.27% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, PBE or VYM?

PBE has been the more volatile fund at 21.2% annualized versus 14.6% for VYM. Worst drawdown: PBE -45.7% vs VYM -58.8%.

Should I hold both PBE and VYM?

PBE and VYM have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PBE and VYM?

PBE and VYM share 2 common holdings with a 1.6% weight overlap. Combined, they hold 587 unique securities.

Which pays a higher dividend, PBE or VYM?

PBE yields 1.73% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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