PBJ vs VYM
Invesco Food and Beverage 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 | PBJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.61% | 0.04% | |
| AUM | $91M | $81.6B | |
| Dividend Yield | 1.26% | 2.24% | |
| Holdings | 32 | 616 | |
| YTD Return | +8.12% | +16.42% | |
| 1Y Return | +2.56% | +24.22% | |
| 3Y Return (annualized) | +4.04% | +19.03% | |
| 5Y Return (annualized) | +3.76% | +12.21% | |
| Volatility (annualized) | 13.0% | 14.6% | |
| Max Drawdown | -41.7% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 23, 2005 | Nov 10, 2006 |
PBJ vs VYM Performance
Invesco Food and Beverage ETF (PBJ) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PBJ returned +2.56% while VYM returned +24.22%. Year to date, PBJ is up 8.12% versus a gain of 16.42% for VYM.
Over three years, PBJ compounded at +4.04% per year against +19.03% for VYM; over five years the annualized figures are +3.76% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs +6.10%. 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 13.0% for PBJ. 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 -41.7% for PBJ 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PBJ charges 0.61% per year while VYM charges 0.04%. On a $10,000 position that is $61 vs $4 annually, a gap of $57 per year that compounds over a long holding period. On income, PBJ currently yields 1.26% against 2.24% for VYM.
Holdings Overlap
PBJ and VYM share 13 holdings out of 621 unique holdings combined, representing a 3.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PBJ or VYM?
PBJ has an expense ratio of 0.61% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, PBJ or VYM?
Over the past year PBJ returned +2.56% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PBJ annualized +6.10% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, PBJ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.0% for PBJ. Worst drawdown: PBJ -41.7% vs VYM -58.8%.
Should I hold both PBJ and VYM?
PBJ and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PBJ and VYM?
PBJ and VYM share 13 common holdings with a 3.1% weight overlap. Combined, they hold 621 unique securities.
Which pays a higher dividend, PBJ or VYM?
PBJ yields 1.26% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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