PDO vs VYM
PIMCO Dynamic Income Opportunities Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. PDO offers more diversification with 635 holdings.
Side-by-Side Comparison
| Metric | PDO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 5.22% | 0.04% | |
| AUM | $1.9B | $81.6B | |
| Dividend Yield | 12.02% | 2.24% | |
| Holdings | 635 | 616 | |
| YTD Return | -0.75% | +16.42% | |
| 1Y Return | +5.13% | +24.22% | |
| 3Y Return (annualized) | +11.74% | +19.03% | |
| 5Y Return (annualized) | +2.08% | +12.21% | |
| Volatility (annualized) | 17.3% | 14.6% | |
| Max Drawdown | -36.8% | -58.8% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 29, 2021 | Nov 10, 2006 |
PDO vs VYM Performance
PIMCO Dynamic Income Opportunities Fund (PDO) is a ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PDO returned +5.13% while VYM returned +24.22%. Year to date, PDO is down 0.75% versus a gain of 16.42% for VYM.
Over three years, PDO compounded at +11.74% per year against +19.03% for VYM; over five years the annualized figures are +2.08% and +12.21% respectively. Across the full 6-year window we track, VYM has the edge at +7.10% annualized vs +3.80%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PDO has been the more volatile fund, with annualized monthly volatility of 17.3% 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 -36.8% for PDO 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PDO charges 5.22% per year while VYM charges 0.04%. On a $10,000 position that is $522 vs $4 annually, a gap of $518 per year that compounds over a long holding period. On income, PDO currently yields 12.02% against 2.24% for VYM.
Holdings Overlap
PDO and VYM share 0 holdings out of 620 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, PDO or VYM?
PDO has an expense ratio of 5.22% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $518 per year of difference.
Which performed better, PDO or VYM?
Over the past year PDO returned +5.13% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), PDO annualized +3.80% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, PDO or VYM?
PDO has been the more volatile fund at 17.3% annualized versus 14.6% for VYM. Worst drawdown: PDO -36.8% vs VYM -58.8%.
Should I hold both PDO and VYM?
PDO and VYM have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PDO and VYM?
PDO and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 620 unique securities.
Which pays a higher dividend, PDO or VYM?
PDO yields 12.02% while VYM yields 2.24%, so PDO currently pays the higher dividend yield.
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