PBP vs VYM
Invesco S&P 500 BuyWrite 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 | PBP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.04% | |
| AUM | $368M | $81.6B | |
| Dividend Yield | 10.52% | 2.24% | |
| Holdings | 508 | 616 | |
| YTD Return | +1.44% | +15.25% | |
| 1Y Return | +8.48% | +22.18% | |
| 3Y Return (annualized) | +12.24% | +18.83% | |
| 5Y Return (annualized) | +7.57% | +12.09% | |
| Volatility (annualized) | 49.5% | 14.6% | |
| Max Drawdown | -79.6% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 20, 2007 | Nov 10, 2006 |
PBP vs VYM Performance
Invesco S&P 500 BuyWrite ETF (PBP) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PBP returned +8.48% while VYM returned +22.18%. Year to date, PBP is up 1.44% versus a gain of 15.25% for VYM.
Over three years, PBP compounded at +12.24% per year against +18.83% for VYM; over five years the annualized figures are +7.57% and +12.09% respectively. Across the full 19-year window we track, VYM has the edge at +7.03% annualized vs +5.58%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PBP has been the more volatile fund, with annualized monthly volatility of 49.5% 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 -79.6% for PBP 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 0.10. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PBP charges 0.29% per year while VYM charges 0.04%. On a $10,000 position that is $29 vs $4 annually, a gap of $25 per year that compounds over a long holding period. On income, PBP currently yields 10.52% against 2.24% for VYM.
Holdings Overlap
PBP and VYM share 243 holdings out of 859 unique holdings combined, representing a 33.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PBP or VYM?
PBP has an expense ratio of 0.29% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, PBP or VYM?
Over the past year PBP returned +8.48% vs +22.18% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), PBP annualized +5.58% vs +7.03% for VYM. Past performance does not guarantee future results.
Which is riskier, PBP or VYM?
PBP has been the more volatile fund at 49.5% annualized versus 14.6% for VYM. Worst drawdown: PBP -79.6% vs VYM -58.8%.
Should I hold both PBP and VYM?
PBP and VYM have a monthly-return correlation of 0.10, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PBP and VYM?
PBP and VYM share 243 common holdings with a 33.2% weight overlap. Combined, they hold 859 unique securities.
Which pays a higher dividend, PBP or VYM?
PBP yields 10.52% while VYM yields 2.24%, so PBP currently pays the higher dividend yield.
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