PCM vs VYM
PCM Fund Inc. 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 | PCM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.63% | 0.04% | |
| AUM | $71M | $79.0B | |
| Dividend Yield | 13.82% | 2.86% | |
| Holdings | 318 | 568 | |
| YTD Return | +0.32% | +16.16% | |
| 1Y Return | +1.92% | +26.05% | |
| 3Y Return (annualized) | -5.33% | +18.43% | |
| 5Y Return (annualized) | -3.73% | +12.21% | |
| Volatility (annualized) | 16.2% | 14.6% | |
| Max Drawdown | -73.2% | -58.8% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 2, 1993 | Nov 10, 2006 |
PCM vs VYM Performance
PCM Fund Inc. (PCM) is a ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PCM returned +1.92% while VYM returned +26.05%. Year to date, PCM is up 0.32% versus a gain of 16.16% for VYM.
Over three years, PCM compounded at -5.33% per year against +18.43% for VYM; over five years the annualized figures are -3.73% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.09% annualized vs -0.65%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PCM has been the more volatile fund, with annualized monthly volatility of 16.2% 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 -73.2% for PCM 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCM charges 1.63% per year while VYM charges 0.04%. On a $10,000 position that is $163 vs $4 annually, a gap of $159 per year that compounds over a long holding period. On income, PCM currently yields 13.82% against 2.86% for VYM.
Holdings Overlap
PCM and VYM share 0 holdings out of 574 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, PCM or VYM?
PCM has an expense ratio of 1.63% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $159 per year of difference.
Which performed better, PCM or VYM?
Over the past year PCM returned +1.92% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PCM annualized -0.65% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, PCM or VYM?
PCM has been the more volatile fund at 16.2% annualized versus 14.6% for VYM. Worst drawdown: PCM -73.2% vs VYM -58.8%.
Should I hold both PCM and VYM?
PCM and VYM have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCM and VYM?
PCM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 574 unique securities.
Which pays a higher dividend, PCM or VYM?
PCM yields 13.82% while VYM yields 2.86%, so PCM currently pays the higher dividend yield.
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