PCEF vs VYM
Invesco CEF Income Composite 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 558 holdings.
Side-by-Side Comparison
| Metric | PCEF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.71% | 0.04% | |
| AUM | $796M | $79.0B | |
| Dividend Yield | 7.61% | 2.86% | |
| Holdings | 110 | 568 | |
| YTD Return | +7.64% | +16.10% | |
| 1Y Return | +11.67% | +25.99% | |
| 3Y Return (annualized) | +13.26% | +18.29% | |
| 5Y Return (annualized) | +4.89% | +12.35% | |
| Volatility (annualized) | 11.6% | 14.6% | |
| Max Drawdown | -46.0% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 19, 2010 | Nov 10, 2006 |
PCEF vs VYM Performance
Invesco CEF Income Composite ETF (PCEF) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PCEF returned +11.67% while VYM returned +25.99%. Year to date, PCEF is up 7.64% versus a gain of 16.10% for VYM.
Over three years, PCEF compounded at +13.26% per year against +18.29% for VYM; over five years the annualized figures are +4.89% and +12.35% respectively. Across the full 17-year window we track, VYM has the edge at +7.08% annualized vs +1.52%. 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 11.6% for PCEF. 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 -46.0% for PCEF 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PCEF charges 2.71% per year while VYM charges 0.04%. On a $10,000 position that is $271 vs $4 annually, a gap of $267 per year that compounds over a long holding period. On income, PCEF currently yields 7.61% against 2.86% for VYM.
Holdings Overlap
PCEF and VYM share 0 holdings out of 665 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, PCEF or VYM?
PCEF has an expense ratio of 2.71% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $267 per year of difference.
Which performed better, PCEF or VYM?
Over the past year PCEF returned +11.67% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), PCEF annualized +1.52% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, PCEF or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 11.6% for PCEF. Worst drawdown: PCEF -46.0% vs VYM -58.8%.
Should I hold both PCEF and VYM?
PCEF and VYM have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCEF and VYM?
PCEF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 665 unique securities.
Which pays a higher dividend, PCEF or VYM?
PCEF yields 7.61% while VYM yields 2.86%, so PCEF currently pays the higher dividend yield.
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