PDI vs VYM
PIMCO Dynamic 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 | PDI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 5.12% | 0.04% | |
| AUM | $7.4B | $79.0B | |
| Dividend Yield | 16.61% | 2.86% | |
| Holdings | 1,822 | 568 | |
| YTD Return | -2.12% | +16.53% | |
| 1Y Return | -3.62% | +25.03% | |
| 3Y Return (annualized) | +8.63% | +18.54% | |
| 5Y Return (annualized) | +2.24% | +12.25% | |
| Volatility (annualized) | 14.6% | 14.6% | |
| Max Drawdown | -48.0% | -58.8% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 25, 2012 | Nov 10, 2006 |
PDI vs VYM Performance
PIMCO Dynamic Income Fund (PDI) is a ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PDI returned -3.62% while VYM returned +25.03%. Year to date, PDI is down 2.12% versus a gain of 16.53% for VYM.
Over three years, PDI compounded at +8.63% per year against +18.54% for VYM; over five years the annualized figures are +2.24% and +12.25% respectively. Across the full 14-year window we track, VYM has the edge at +7.10% annualized vs +2.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.6% for PDI. 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 -48.0% for PDI 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
PDI charges 5.12% per year while VYM charges 0.04%. On a $10,000 position that is $512 vs $4 annually, a gap of $508 per year that compounds over a long holding period. On income, PDI currently yields 16.61% against 2.86% for VYM.
Holdings Overlap
PDI and VYM share 0 holdings out of 583 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, PDI or VYM?
PDI has an expense ratio of 5.12% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $508 per year of difference.
Which performed better, PDI or VYM?
Over the past year PDI returned -3.62% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), PDI annualized +2.16% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, PDI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.6% for PDI. Worst drawdown: PDI -48.0% vs VYM -58.8%.
Should I hold both PDI and VYM?
PDI and VYM have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDI and VYM?
PDI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 583 unique securities.
Which pays a higher dividend, PDI or VYM?
PDI yields 16.61% while VYM yields 2.86%, so PDI currently pays the higher dividend yield.
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