PEJ vs VYM
Invesco Leisure and Entertainment ETF 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 | PEJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.57% | 0.04% | |
| AUM | $251M | $79.0B | |
| Dividend Yield | 0.50% | 2.86% | |
| Holdings | 32 | 568 | |
| YTD Return | +12.80% | +16.78% | |
| 1Y Return | +18.17% | +24.43% | |
| 3Y Return (annualized) | +18.54% | +18.60% | |
| 5Y Return (annualized) | +7.50% | +12.30% | |
| Volatility (annualized) | 22.2% | 14.6% | |
| Max Drawdown | -67.3% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 23, 2005 | Nov 10, 2006 |
PEJ vs VYM Performance
Invesco Leisure and Entertainment ETF (PEJ) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PEJ returned +18.17% while VYM returned +24.43%. Year to date, PEJ is up 12.80% versus a gain of 16.78% for VYM.
Over three years, PEJ compounded at +18.54% per year against +18.60% for VYM; over five years the annualized figures are +7.50% and +12.30% respectively. Across the full 20-year window we track, PEJ has the edge at +7.66% annualized vs +7.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PEJ has been the more volatile fund, with annualized monthly volatility of 22.2% 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 -67.3% for PEJ 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PEJ charges 0.57% per year while VYM charges 0.04%. On a $10,000 position that is $57 vs $4 annually, a gap of $53 per year that compounds over a long holding period. On income, PEJ currently yields 0.50% against 2.86% for VYM.
Holdings Overlap
PEJ and VYM share 5 holdings out of 583 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PEJ or VYM?
PEJ has an expense ratio of 0.57% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, PEJ or VYM?
Over the past year PEJ returned +18.17% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PEJ annualized +7.66% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, PEJ or VYM?
PEJ has been the more volatile fund at 22.2% annualized versus 14.6% for VYM. Worst drawdown: PEJ -67.3% vs VYM -58.8%.
Should I hold both PEJ and VYM?
PEJ and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PEJ and VYM?
PEJ and VYM share 5 common holdings with a 0.8% weight overlap. Combined, they hold 583 unique securities.
Which pays a higher dividend, PEJ or VYM?
PEJ yields 0.50% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.