PDN vs VYM
Invesco FTSE RAFI Developed Markets ex-US Small-Mid ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. PDN delivered stronger 1-year returns. PDN offers more diversification with 1,591 holdings.
Side-by-Side Comparison
| Metric | PDN | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.04% | |
| AUM | $364M | $81.6B | |
| Dividend Yield | 3.23% | 2.24% | |
| Holdings | 1,591 | 613 | |
| YTD Return | +13.54% | +14.57% | |
| 1Y Return | +22.25% | +21.08% | |
| 3Y Return (annualized) | +18.45% | +18.16% | |
| 5Y Return (annualized) | +7.18% | +12.00% | |
| Volatility (annualized) | 18.2% | 14.6% | |
| Max Drawdown | -60.1% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 27, 2007 | Nov 10, 2006 |
PDN vs VYM Performance
Invesco FTSE RAFI Developed Markets ex-US Small-Mid ETF (PDN) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PDN returned +22.25% while VYM returned +21.08%. Year to date, PDN is up 13.54% versus a gain of 14.57% for VYM.
Over three years, PDN compounded at +18.45% per year against +18.16% for VYM; over five years the annualized figures are +7.18% and +12.00% respectively. Across the full 19-year window we track, VYM has the edge at +6.99% annualized vs +4.19%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PDN has been the more volatile fund, with annualized monthly volatility of 18.2% 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 -60.1% for PDN 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 0.82. 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 3.23% against 2.24% for VYM.
Holdings Overlap
PDN and VYM share 8 holdings out of 2150 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $43 per year of difference.
Which performed better, PDN or VYM?
Over the past year PDN returned +22.25% vs +21.08% for VYM, so PDN leads on 1-year performance. Over the longest common window we track (19 years), PDN annualized +4.19% vs +6.99% for VYM. Past performance does not guarantee future results.
Which is riskier, PDN or VYM?
PDN has been the more volatile fund at 18.2% annualized versus 14.6% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDN and VYM?
PDN and VYM share 8 common holdings with a 0.2% weight overlap. Combined, they hold 2150 unique securities.
Which pays a higher dividend, PDN or VYM?
PDN yields 3.23% while VYM yields 2.24%, so PDN currently pays the higher dividend yield.
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