PCLO 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

MetricPCLOVYMWinner
Expense Ratio0.29%0.04%
AUM$20M$79.0B
Dividend Yield5.28%2.86%
Holdings47568
YTD Return+2.71%+16.78%
1Y Return+5.05%+24.43%
3Y Return (annualized)-+18.60%
5Y Return (annualized)-+12.30%
Volatility (annualized)0.7%14.6%
Max Drawdown-0.8%-58.8%
Fund FamilyVirtus Investment PartnersVanguard (US)
CategoryFixed IncomeEquity
InceptionNov 27, 2024Nov 10, 2006

PCLO vs VYM Performance

Virtus Seix AAA Private Credit CLO ETF (PCLO) is a ETF from Virtus Investment Partners and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PCLO returned +5.05% while VYM returned +24.43%. Year to date, PCLO is up 2.71% versus a gain of 16.78% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 0.7% for PCLO. 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 -0.8% for PCLO 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PCLO charges 0.29% per year while VYM charges 0.04%. On a $10,000 position that is $29 vs $4 annually, a gap of $25 per year that compounds over a long holding period. On income, PCLO currently yields 5.28% against 2.86% for VYM.

Frequently Asked Questions

Which is cheaper, PCLO or VYM?

PCLO has an expense ratio of 0.29% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $25 per year of difference.

Which performed better, PCLO or VYM?

Over the past year PCLO returned +5.05% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), PCLO annualized +5.15% vs +7.11% for VYM. Past performance does not guarantee future results.

Which is riskier, PCLO or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 0.7% for PCLO. Worst drawdown: PCLO -0.8% vs VYM -58.8%.

Should I hold both PCLO and VYM?

PCLO and VYM have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, PCLO or VYM?

PCLO yields 5.28% while VYM yields 2.86%, so PCLO currently pays the higher dividend yield.

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