PCEF vs VYM
Invesco CEF Income Composite ETF vs Vanguard High Dividend Yield ETF
Which is better, PCEF or VYM?
Debt-oriented balanced against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 29.4%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PCEF | VYM |
|---|---|---|
| Expense Ratio | 2.71% | 0.04%Best |
| AUM | $807M | $81.6B |
| Dividend Yield | 7.47% | 2.22% |
| Holdings | 109 | 613 |
| YTD Return | +4.76% | +11.35%Best |
| 1Y Return | +5.61% | +15.34%Best |
| 3Y Return (annualized) | +13.29% | +17.22%Best |
| 5Y Return (annualized) | +4.72% | +12.30%Best |
| Volatility (annualized) | 11.6%Best | 13.2% |
| Max Drawdown | -46.0% | -35.7%Best |
| $10,000 over 5 years | $12,594 | $17,861Best |
| Top 10 Weight | 29.4% | 26.1%Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Debt-oriented balanced | Large Cap Value |
| Inception | Feb 19, 2010 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Feb 19, 2010 to Sep 18, 2026 (16.6 years).
PCEF vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 16.6 years both funds cover.
PCEF vs VYM Performance
Invesco CEF Income Composite ETF (PCEF) is an ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year PCEF returned +5.61% while VYM returned +15.34%. Year to date, PCEF is up 4.76% versus a gain of 11.35% for VYM.
Over three years, PCEF compounded at +13.29% per year against +17.22% for VYM; over five years the annualized figures are +4.72% and +12.30% respectively. Across the full 17-year window we track, VYM has the edge at +10.08% annualized vs +1.34%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.2% 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 7.47% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 106 holdings in PCEF and 557 in VYM, totalling 100.0% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 106 positions we hold weights for in PCEF and 557 in VYM, against full books of 109 and 613.
What only one of them owns
Our book lists 528 positions for VYM that do not appear in our book for PCEF (97.1% of the fund), and 104 for PCEF that do not appear in VYM (97.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of PCEF and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $267 a year on a $10,000 investment.
Which performed better, PCEF or VYM?
Over the past year PCEF returned +5.61% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), PCEF annualized +1.34% vs +10.08% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PCEF or VYM?
VYM has been the more volatile fund at 13.2% annualized versus 11.6% for PCEF. Worst drawdown: PCEF -46.0% vs VYM -35.7%.
Should I hold both PCEF and VYM?
PCEF and VYM have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, PCEF or VYM?
PCEF yields 7.47% while VYM yields 2.22%, so PCEF currently pays the higher dividend yield.
Is VYM better than PCEF?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 29.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.