PEY vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricPEYVXUSWinner
Expense Ratio0.54%0.05%
AUM$1.1B$156.5B
Dividend Yield4.40%2.60%
Holdings538,747
YTD Return+26.22%+15.24%
1Y Return+23.98%+26.32%
3Y Return (annualized)+12.18%+19.85%
5Y Return (annualized)+8.97%+9.23%
Volatility (annualized)17.7%15.1%
Max Drawdown-75.6%-39.9%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
InceptionDec 9, 2004Jan 26, 2011

PEY vs VXUS Performance

Invesco High Yield Equity Dividend Achievers ETF (PEY) is a ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year PEY returned +23.98% while VXUS returned +26.32%. Year to date, PEY is up 26.22% versus a gain of 15.24% for VXUS.

Over three years, PEY compounded at +12.18% per year against +19.85% for VXUS; over five years the annualized figures are +8.97% and +9.23% respectively. Across the full 16-year window we track, VXUS has the edge at +4.89% 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 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PEY charges 0.54% per year while VXUS charges 0.05%. On a $10,000 position that is $54 vs $5 annually, a gap of $49 per year that compounds over a long holding period. On income, PEY currently yields 4.40% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

PEY and VXUS share 0 holdings out of 7911 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, PEY or VXUS?

PEY has an expense ratio of 0.54% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $49 per year of difference.

Which performed better, PEY or VXUS?

Over the past year PEY returned +23.98% vs +26.32% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), PEY annualized +3.69% vs +4.89% for VXUS. Past performance does not guarantee future results.

Which is riskier, PEY or VXUS?

PEY has been the more volatile fund at 17.7% annualized versus 15.1% for VXUS. Worst drawdown: PEY -75.6% vs VXUS -39.9%.

Should I hold both PEY and VXUS?

PEY and VXUS have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PEY and VXUS?

PEY and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7911 unique securities.

Which pays a higher dividend, PEY or VXUS?

PEY yields 4.40% while VXUS yields 2.60%, so PEY currently pays the higher dividend yield.

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