PFI vs VYM
Invesco Dorsey Wright Financial 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 | PFI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $60M | $79.0B | |
| Dividend Yield | 1.01% | 2.86% | |
| Holdings | 51 | 568 | |
| YTD Return | +8.02% | +16.16% | |
| 1Y Return | +13.62% | +26.05% | |
| 3Y Return (annualized) | +14.99% | +18.43% | |
| 5Y Return (annualized) | +4.78% | +12.21% | |
| Volatility (annualized) | 18.4% | 14.6% | |
| Max Drawdown | -60.3% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 12, 2006 | Nov 10, 2006 |
PFI vs VYM Performance
Invesco Dorsey Wright Financial Momentum ETF (PFI) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PFI returned +13.62% while VYM returned +26.05%. Year to date, PFI is up 8.02% versus a gain of 16.16% for VYM.
Over three years, PFI compounded at +14.99% per year against +18.43% for VYM; over five years the annualized figures are +4.78% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.09% annualized vs +5.21%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PFI has been the more volatile fund, with annualized monthly volatility of 18.4% 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 -60.3% for PFI 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PFI 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, PFI currently yields 1.01% against 2.86% for VYM.
Holdings Overlap
PFI and VYM share 24 holdings out of 583 unique holdings combined, representing a 7.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PFI or VYM?
PFI 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, PFI or VYM?
Over the past year PFI returned +13.62% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PFI annualized +5.21% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, PFI or VYM?
PFI has been the more volatile fund at 18.4% annualized versus 14.6% for VYM. Worst drawdown: PFI -60.3% vs VYM -58.8%.
Should I hold both PFI and VYM?
PFI and VYM have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFI and VYM?
PFI and VYM share 24 common holdings with a 7.7% weight overlap. Combined, they hold 583 unique securities.
Which pays a higher dividend, PFI or VYM?
PFI yields 1.01% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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