PBW vs VYM
Invesco WilderHill Clean Energy ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. PBW delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | PBW | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.64% | 0.04% | |
| AUM | $386M | $79.0B | |
| Dividend Yield | 1.21% | 2.86% | |
| Holdings | 71 | 568 | |
| YTD Return | +8.30% | +15.80% | |
| 1Y Return | +51.16% | +26.12% | |
| 3Y Return (annualized) | -2.86% | +18.25% | |
| 5Y Return (annualized) | -14.55% | +12.51% | |
| Volatility (annualized) | 35.5% | 14.6% | |
| Max Drawdown | -89.7% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 3, 2005 | Nov 10, 2006 |
PBW vs VYM Performance
Invesco WilderHill Clean Energy ETF (PBW) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PBW returned +51.16% while VYM returned +26.12%. Year to date, PBW is up 8.30% versus a gain of 15.80% for VYM.
Over three years, PBW compounded at -2.86% per year against +18.25% for VYM; over five years the annualized figures are -14.55% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs -3.19%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PBW has been the more volatile fund, with annualized monthly volatility of 35.5% 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 -89.7% for PBW 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PBW charges 0.64% per year while VYM charges 0.04%. On a $10,000 position that is $64 vs $4 annually, a gap of $60 per year that compounds over a long holding period. On income, PBW currently yields 1.21% against 2.86% for VYM.
Holdings Overlap
PBW and VYM share 1 holdings out of 626 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PBW | Weight in VYM | Difference |
|---|---|---|---|
| ALB | 0.96% | 0.09% | 0.87% |
Frequently Asked Questions
Which is cheaper, PBW or VYM?
PBW has an expense ratio of 0.64% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $60 per year of difference.
Which performed better, PBW or VYM?
Over the past year PBW returned +51.16% vs +26.12% for VYM, so PBW leads on 1-year performance. Over the longest common window we track (20 years), PBW annualized -3.19% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, PBW or VYM?
PBW has been the more volatile fund at 35.5% annualized versus 14.6% for VYM. Worst drawdown: PBW -89.7% vs VYM -58.8%.
Should I hold both PBW and VYM?
PBW and VYM have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PBW and VYM?
PBW and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 626 unique securities.
Which pays a higher dividend, PBW or VYM?
PBW yields 1.21% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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