PCQ vs VYM
PIMCO California Municipal Income 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 | PCQ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.20% | 0.04% | |
| AUM | $556M | $79.0B | |
| Dividend Yield | 4.28% | 2.86% | |
| Holdings | 263 | 568 | |
| YTD Return | +4.06% | +16.10% | |
| 1Y Return | +13.01% | +25.99% | |
| 3Y Return (annualized) | +1.19% | +18.29% | |
| 5Y Return (annualized) | -10.05% | +12.35% | |
| Volatility (annualized) | 15.6% | 14.6% | |
| Max Drawdown | -60.6% | -58.8% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 29, 2001 | Nov 10, 2006 |
PCQ vs VYM Performance
PIMCO California Municipal Income Fund (PCQ) is a ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PCQ returned +13.01% while VYM returned +25.99%. Year to date, PCQ is up 4.06% versus a gain of 16.10% for VYM.
Over three years, PCQ compounded at +1.19% per year against +18.29% for VYM; over five years the annualized figures are -10.05% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.08% annualized vs -1.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PCQ has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -60.6% for PCQ 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PCQ charges 1.20% per year while VYM charges 0.04%. On a $10,000 position that is $120 vs $4 annually, a gap of $116 per year that compounds over a long holding period. On income, PCQ currently yields 4.28% against 2.86% for VYM.
Holdings Overlap
PCQ and VYM share 0 holdings out of 642 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, PCQ or VYM?
PCQ has an expense ratio of 1.20% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $116 per year of difference.
Which performed better, PCQ or VYM?
Over the past year PCQ returned +13.01% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PCQ annualized -1.10% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, PCQ or VYM?
PCQ has been the more volatile fund at 15.6% annualized versus 14.6% for VYM. Worst drawdown: PCQ -60.6% vs VYM -58.8%.
Should I hold both PCQ and VYM?
PCQ and VYM have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PCQ and VYM?
PCQ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 642 unique securities.
Which pays a higher dividend, PCQ or VYM?
PCQ yields 4.28% while VYM yields 2.86%, so PCQ currently pays the higher dividend yield.
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