PEY vs VOO
Invesco High Yield Equity Dividend Achievers ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. PEY delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | PEY | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.54% | 0.03% | |
| AUM | $1.1B | $979.0B | |
| Dividend Yield | 4.40% | 1.09% | |
| Holdings | 53 | 509 | |
| YTD Return | +26.22% | +14.48% | |
| 1Y Return | +23.98% | +22.02% | |
| 3Y Return (annualized) | +12.18% | +21.80% | |
| 5Y Return (annualized) | +8.97% | +13.36% | |
| Volatility (annualized) | 17.7% | 14.2% | |
| Max Drawdown | -75.6% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 9, 2004 | Sep 7, 2010 |
PEY vs VOO Performance
Invesco High Yield Equity Dividend Achievers ETF (PEY) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PEY returned +23.98% while VOO returned +22.02%. Year to date, PEY is up 26.22% versus a gain of 14.48% for VOO.
Over three years, PEY compounded at +12.18% per year against +21.80% for VOO; over five years the annualized figures are +8.97% and +13.36% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs +3.69%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PEY has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 14.2% for VOO. 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 -75.6% for PEY and -34.3% for VOO. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PEY charges 0.54% per year while VOO charges 0.03%. On a $10,000 position that is $54 vs $3 annually, a gap of $51 per year that compounds over a long holding period. On income, PEY currently yields 4.40% against 1.09% for VOO.
Holdings Overlap
PEY and VOO share 26 holdings out of 529 unique holdings combined, representing a 2.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PEY or VOO?
PEY has an expense ratio of 0.54% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, PEY or VOO?
Over the past year PEY returned +23.98% vs +22.02% for VOO, so PEY leads on 1-year performance. Over the longest common window we track (16 years), PEY annualized +3.69% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, PEY or VOO?
PEY has been the more volatile fund at 17.7% annualized versus 14.2% for VOO. Worst drawdown: PEY -75.6% vs VOO -34.3%.
Should I hold both PEY and VOO?
PEY and VOO have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PEY and VOO?
PEY and VOO share 26 common holdings with a 2.3% weight overlap. Combined, they hold 529 unique securities.
Which pays a higher dividend, PEY or VOO?
PEY yields 4.40% while VOO yields 1.09%, so PEY currently pays the higher dividend yield.
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