PEY vs VYM
Invesco High Yield Equity Dividend Achievers ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. PEY delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | PEY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.54% | 0.04% | |
| AUM | $1.2B | $81.6B | |
| Dividend Yield | 4.22% | 2.24% | |
| Holdings | 52 | 616 | |
| YTD Return | +26.29% | +15.60% | |
| 1Y Return | +24.46% | +23.48% | |
| 3Y Return (annualized) | +13.15% | +19.07% | |
| 5Y Return (annualized) | +9.49% | +12.50% | |
| Volatility (annualized) | 17.7% | 14.6% | |
| Max Drawdown | -75.6% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 9, 2004 | Nov 10, 2006 |
PEY vs VYM Performance
Invesco High Yield Equity Dividend Achievers ETF (PEY) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PEY returned +24.46% while VYM returned +23.48%. Year to date, PEY is up 26.29% versus a gain of 15.60% for VYM.
Over three years, PEY compounded at +13.15% per year against +19.07% for VYM; over five years the annualized figures are +9.49% and +12.50% respectively. Across the full 20-year window we track, VYM has the edge at +7.05% 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 14.6% 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 -75.6% for PEY 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PEY charges 0.54% per year while VYM charges 0.04%. On a $10,000 position that is $54 vs $4 annually, a gap of $50 per year that compounds over a long holding period. On income, PEY currently yields 4.22% against 2.24% for VYM.
Holdings Overlap
PEY and VYM share 47 holdings out of 606 unique holdings combined, representing a 6.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PEY or VYM?
PEY has an expense ratio of 0.54% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $50 per year of difference.
Which performed better, PEY or VYM?
Over the past year PEY returned +24.46% vs +23.48% for VYM, so PEY leads on 1-year performance. Over the longest common window we track (20 years), PEY annualized +3.69% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, PEY or VYM?
PEY has been the more volatile fund at 17.7% annualized versus 14.6% for VYM. Worst drawdown: PEY -75.6% vs VYM -58.8%.
Should I hold both PEY and VYM?
PEY and VYM have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PEY and VYM?
PEY and VYM share 47 common holdings with a 6.5% weight overlap. Combined, they hold 606 unique securities.
Which pays a higher dividend, PEY or VYM?
PEY yields 4.22% while VYM yields 2.24%, so PEY currently pays the higher dividend yield.
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