PDN vs VYM

PDN vs VYM

Which is better, PDN or VYM?

Mid Cap Growth against Large Cap Value.

VYM has a lower expense ratio. PDN led over 1Y and 3Y, VYM over 5Y and the full window.

Lower Fees: VYMHigher Returns: split

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricPDNVYM
Expense Ratio0.47%0.04%Best
AUM$361M$81.6B
Dividend Yield3.11%2.22%
Holdings1,591613
YTD Return+10.47%Best+10.23%
1Y Return+15.01%Best+14.28%
3Y Return (annualized)+18.66%Best+17.50%
5Y Return (annualized)+6.49%+11.60%Best
Volatility (annualized)18.1%14.8%Best
Max Drawdown-60.1%-58.8%Best
$10,000 over 5 years$13,694$17,311Best
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
StyleMid Cap GrowthLarge Cap Value
InceptionSep 27, 2007Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 27, 2007 to Sep 23, 2026 (19 years).

PDN vs VYM growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19 years both funds cover.

PDN vs VYM Performance

Invesco FTSE RAFI Developed Markets ex-US Small-Mid ETF (PDN) is an ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year PDN returned +15.01% while VYM returned +14.28%. Year to date, PDN is up 10.47% versus a gain of 10.23% for VYM.

Over three years, PDN compounded at +18.66% per year against +17.50% for VYM; over five years the annualized figures are +6.49% and +11.60% respectively. Across the full 19-year window we track, VYM has the edge at +6.62% annualized vs +4.03%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PDN has been the more volatile fund, with annualized monthly volatility of 18.1% compared with 14.8% 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 -60.1% for PDN and -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.82. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PDN charges 0.47% per year while VYM charges 0.04%. On a $10,000 position that is $47 vs $4 annually, a gap of $43 per year that compounds over a long holding period. On income, PDN currently yields 3.11% against 2.22% for VYM.

Holdings Overlap

VYM already in PDN0.6%

At least 0.6% of VYM's money is in holdings PDN also owns.

Stated as a floor: for PDN, our book for it covers 90.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

8 positions in common, counted across the 1,350 positions we hold weights for in PDN and 557 in VYM, against full books of 1,591 and 613.

Top Shared Holdings

StockWeight in PDNWeight in VYMDifference
SRESempra Common Stock0.05%0.24%0.19%
KLICKulicke & Soffa Industries0.20%0.02%0.18%
CCLCarnival Corporation Common Stock0.04%0.14%0.10%
SCIService Corp International0.10%0.05%0.05%
BAPCredicorp Ltd - Common0.01%0.11%0.10%
AMAntero Midstream Corporationam0.09%0.03%0.06%
BRSL:LNBrightstar Lottery Plc0.05%0.00%0.05%
SIG:LNSignet Jewelers Limited Common Shares0.02%0.01%0.01%

You are not choosing between two funds in isolation.

Whichever of PDN and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

PDNVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, PDN or VYM?

PDN has an expense ratio of 0.47% while VYM charges 0.04%. VYM is the cheaper option, by $43 a year on a $10,000 investment.

Which performed better, PDN or VYM?

Over the past year PDN returned +15.01% vs +14.28% for VYM, so PDN leads on 1-year performance. Over the longest common window we track (19 years), PDN annualized +4.03% vs +6.62% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, PDN or VYM?

PDN has been the more volatile fund at 18.1% annualized versus 14.8% for VYM. Worst drawdown: PDN -60.1% vs VYM -58.8%.

Should I hold both PDN and VYM?

PDN and VYM have a monthly-return correlation of 0.82, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, PDN or VYM?

PDN yields 3.11% while VYM yields 2.22%, so PDN currently pays the higher dividend yield.

Is VYM better than PDN?

VYM has a lower expense ratio. PDN led over 1Y and 3Y, VYM over 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.