PEPS vs VYM
Parametric Equity Plus ETF vs Vanguard High Dividend Yield ETF
Which is better, PEPS or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. PEPS led over 1Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 38.0%.
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
| Metric | PEPS | VYM |
|---|---|---|
| Expense Ratio | 0.10% | 0.04%Best |
| AUM | $29M | $81.6B |
| Dividend Yield | 0.91% | 2.22% |
| Holdings | 193 | 613 |
| YTD Return | +13.39%Best | +10.24% |
| 1Y Return | +19.57%Best | +14.89% |
| 3Y Return (annualized) | - | +18.00% |
| 5Y Return (annualized) | - | +11.42% |
| Volatility (annualized) | 12.9% | 10.9%Best |
| Max Drawdown | -21.0% | -14.5%Best |
| $10,000 over 1.9 years | $13,559Best | $12,485 |
| Top 10 Weight | 38.0% | 26.1%Best |
| Fund Family | Parametric | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Nov 7, 2024 | Nov 10, 2006 |
Volatility and max drawdown, and the $10,000 over 1.9 years row, are measured over the window both funds cover: Nov 8, 2024 to Sep 25, 2026 (1.9 years).
PEPS 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 1.9 years both funds cover.
PEPS vs VYM Performance
Parametric Equity Plus ETF (PEPS) is an ETF from Parametric and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year PEPS returned +19.57% while VYM returned +14.89%. Year to date, PEPS is up 13.39% versus a gain of 10.24% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PEPS has been the more volatile fund, with annualized monthly volatility of 12.9% compared with 10.9% 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 -21.0% for PEPS and -14.5% 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 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
PEPS charges 0.10% per year while VYM charges 0.04%. On a $10,000 position that is $10 vs $4 annually, a gap of $6 per year that compounds over a long holding period. On income, PEPS currently yields 0.91% against 2.22% for VYM.
Holdings Overlap
31.2% of PEPS's money is in holdings VYM also owns. 47.1% of VYM's money is in holdings PEPS also owns.
The two portfolios partly overlap.
72 positions in common, counted across the 195 positions we hold weights for in PEPS and 557 in VYM, against full books of 193 and 613.
What only one of them owns
Our book lists 457 positions for VYM that do not appear in our book for PEPS (50.0% of the fund), and 112 for PEPS that do not appear in VYM (65.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in PEPS | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 2.69% | 7.35% | 4.66% |
| JPMJpmorgan Chase | 1.72% | 3.82% | 2.10% |
| XOMExxon Mobil Corp. | 1.34% | 2.63% | 1.29% |
| JNJJohnson & Johnson - Common | 1.28% | 2.51% | 1.23% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.98% | 1.86% | 0.88% |
| ABBVAbbvie Inc. | 0.93% | 1.80% | 0.87% |
| BACBank of America Corp.: Financials | 0.89% | 1.66% | 0.77% |
| CVXChevron Corp | 0.90% | 1.48% | 0.58% |
| UNHUnitedhealth Group Incorporated | 0.66% | 1.52% | 0.86% |
| MRKMerck & Company Inc | 0.84% | 1.31% | 0.47% |
47.1% of VYM is already inside PEPS.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PEPS or VYM?
PEPS has an expense ratio of 0.10% while VYM charges 0.04%. VYM is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, PEPS or VYM?
Over the past year PEPS returned +19.57% vs +14.89% for VYM, so PEPS leads on 1-year performance. Over the longest common window we track (2 years), PEPS annualized +17.38% vs +12.39% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PEPS or VYM?
PEPS has been the more volatile fund at 12.9% annualized versus 10.9% for VYM. Worst drawdown: PEPS -21.0% vs VYM -14.5%.
Should I hold both PEPS and VYM?
PEPS and VYM have a monthly-return correlation of 0.68, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PEPS and VYM?
47.1% of VYM's money is in holdings PEPS also owns. 47.1% of VYM's is in holdings PEPS also owns. They hold 72 positions in common, counted across the 195 positions we hold weights for in PEPS and 557 in VYM.
Which pays a higher dividend, PEPS or VYM?
PEPS yields 0.91% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than PEPS?
VYM has a lower expense ratio. PEPS led over 1Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 38.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.