PBQQ vs VYM

Quick Verdict

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

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricPBQQVYMWinner
Expense Ratio0.50%0.04%
AUM$76M$79.0B
Dividend Yield0.01%2.86%
Holdings7568
YTD Return+9.98%+16.16%
1Y Return+15.67%+26.05%
3Y Return (annualized)-+18.43%
5Y Return (annualized)-+12.21%
Volatility (annualized)8.9%14.6%
Max Drawdown-12.9%-58.8%
Fund FamilyPGIM InvestmentsVanguard (US)
CategoryAlternativeEquity
InceptionDec 27, 2024Nov 10, 2006

PBQQ vs VYM Performance

PGIM Laddered Nasdaq-100 Buffer 12 ETF (PBQQ) is a ETF from PGIM Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PBQQ returned +15.67% while VYM returned +26.05%. Year to date, PBQQ is up 9.98% versus a gain of 16.16% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 8.9% for PBQQ. 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 -12.9% for PBQQ 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PBQQ charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, PBQQ currently yields 0.01% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

PBQQ and VYM share 0 holdings out of 562 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, PBQQ or VYM?

PBQQ has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.

Which performed better, PBQQ or VYM?

Over the past year PBQQ returned +15.67% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), PBQQ annualized +15.98% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, PBQQ or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 8.9% for PBQQ. Worst drawdown: PBQQ -12.9% vs VYM -58.8%.

Should I hold both PBQQ and VYM?

PBQQ and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PBQQ and VYM?

PBQQ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 562 unique securities.

Which pays a higher dividend, PBQQ or VYM?

PBQQ yields 0.01% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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