PCF vs VYM
Putnam High Income Securities Fund 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 | PCF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 4.77% | 0.04% | |
| AUM | $117M | $79.0B | |
| Dividend Yield | 10.91% | 2.86% | |
| Holdings | 135 | 568 | |
| YTD Return | -6.46% | +15.80% | |
| 1Y Return | -5.03% | +26.12% | |
| 3Y Return (annualized) | +4.93% | +18.25% | |
| 5Y Return (annualized) | -1.01% | +12.51% | |
| Volatility (annualized) | 15.4% | 14.6% | |
| Max Drawdown | -67.3% | -58.8% | |
| Fund Family | Putnam Investments | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jul 9, 1987 | Nov 10, 2006 |
PCF vs VYM Performance
Putnam High Income Securities Fund (PCF) is a ETF from Putnam Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PCF returned -5.03% while VYM returned +26.12%. Year to date, PCF is down 6.46% versus a gain of 15.80% for VYM.
Over three years, PCF compounded at +4.93% per year against +18.25% for VYM; over five years the annualized figures are -1.01% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs -0.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PCF has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -67.3% for PCF 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
PCF charges 4.77% per year while VYM charges 0.04%. On a $10,000 position that is $477 vs $4 annually, a gap of $473 per year that compounds over a long holding period. On income, PCF currently yields 10.91% against 2.86% for VYM.
Holdings Overlap
PCF and VYM share 0 holdings out of 657 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, PCF or VYM?
PCF has an expense ratio of 4.77% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $473 per year of difference.
Which performed better, PCF or VYM?
Over the past year PCF returned -5.03% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PCF annualized -0.04% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, PCF or VYM?
PCF has been the more volatile fund at 15.4% annualized versus 14.6% for VYM. Worst drawdown: PCF -67.3% vs VYM -58.8%.
Should I hold both PCF and VYM?
PCF 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 PCF and VYM?
PCF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 657 unique securities.
Which pays a higher dividend, PCF or VYM?
PCF yields 10.91% while VYM yields 2.86%, so PCF currently pays the higher dividend yield.
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