PEZ vs VYM
Invesco Dorsey Wright Consumer Cyclicals Momentum 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 | PEZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $22M | $79.0B | |
| Dividend Yield | 0.24% | 2.86% | |
| Holdings | 48 | 568 | |
| YTD Return | -2.14% | +16.16% | |
| 1Y Return | +4.67% | +26.05% | |
| 3Y Return (annualized) | +13.62% | +18.43% | |
| 5Y Return (annualized) | +2.58% | +12.21% | |
| Volatility (annualized) | 21.7% | 14.6% | |
| Max Drawdown | -59.0% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 12, 2006 | Nov 10, 2006 |
PEZ vs VYM Performance
Invesco Dorsey Wright Consumer Cyclicals Momentum ETF (PEZ) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PEZ returned +4.67% while VYM returned +26.05%. Year to date, PEZ is down 2.14% versus a gain of 16.16% for VYM.
Over three years, PEZ compounded at +13.62% per year against +18.43% for VYM; over five years the annualized figures are +2.58% and +12.21% respectively. Across the full 20-year window we track, PEZ has the edge at +7.37% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PEZ has been the more volatile fund, with annualized monthly volatility of 21.7% 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 -59.0% for PEZ 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PEZ charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, PEZ currently yields 0.24% against 2.86% for VYM.
Holdings Overlap
PEZ and VYM share 13 holdings out of 590 unique holdings combined, representing a 3.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PEZ or VYM?
PEZ has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, PEZ or VYM?
Over the past year PEZ returned +4.67% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PEZ annualized +7.37% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, PEZ or VYM?
PEZ has been the more volatile fund at 21.7% annualized versus 14.6% for VYM. Worst drawdown: PEZ -59.0% vs VYM -58.8%.
Should I hold both PEZ and VYM?
PEZ and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PEZ and VYM?
PEZ and VYM share 13 common holdings with a 3.3% weight overlap. Combined, they hold 590 unique securities.
Which pays a higher dividend, PEZ or VYM?
PEZ yields 0.24% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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