PDT vs VYM
John Hancock Premium Dividend 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 568 holdings.
Side-by-Side Comparison
| Metric | PDT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.41% | 0.04% | |
| AUM | $690M | $79.0B | |
| Dividend Yield | 6.89% | 2.86% | |
| Holdings | 144 | 568 | |
| YTD Return | +4.82% | +16.78% | |
| 1Y Return | +2.20% | +24.43% | |
| 3Y Return (annualized) | +14.88% | +18.60% | |
| 5Y Return (annualized) | +2.06% | +12.30% | |
| Volatility (annualized) | 16.7% | 14.6% | |
| Max Drawdown | -62.6% | -58.8% | |
| Fund Family | John Hancock Investment Management | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Dec 21, 1989 | Nov 10, 2006 |
PDT vs VYM Performance
John Hancock Premium Dividend Fund (PDT) is a ETF from John Hancock Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PDT returned +2.20% while VYM returned +24.43%. Year to date, PDT is up 4.82% versus a gain of 16.78% for VYM.
Over three years, PDT compounded at +14.88% per year against +18.60% for VYM; over five years the annualized figures are +2.06% and +12.30% respectively. Across the full 20-year window we track, VYM has the edge at +7.11% annualized vs +1.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PDT has been the more volatile fund, with annualized monthly volatility of 16.7% 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 -62.6% for PDT 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
PDT charges 2.41% per year while VYM charges 0.04%. On a $10,000 position that is $241 vs $4 annually, a gap of $237 per year that compounds over a long holding period. On income, PDT currently yields 6.89% against 2.86% for VYM.
Holdings Overlap
PDT and VYM share 45 holdings out of 613 unique holdings combined, representing a 12.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PDT or VYM?
PDT has an expense ratio of 2.41% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $237 per year of difference.
Which performed better, PDT or VYM?
Over the past year PDT returned +2.20% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PDT annualized +1.91% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, PDT or VYM?
PDT has been the more volatile fund at 16.7% annualized versus 14.6% for VYM. Worst drawdown: PDT -62.6% vs VYM -58.8%.
Should I hold both PDT and VYM?
PDT 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 PDT and VYM?
PDT and VYM share 45 common holdings with a 12.3% weight overlap. Combined, they hold 613 unique securities.
Which pays a higher dividend, PDT or VYM?
PDT yields 6.89% while VYM yields 2.86%, so PDT currently pays the higher dividend yield.
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