PFLD vs VYM
AAM Low Duration Preferred and Income Securities 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 | PFLD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.04% | |
| AUM | $413M | $79.0B | |
| Dividend Yield | 5.47% | 2.86% | |
| Holdings | 324 | 568 | |
| YTD Return | +2.64% | +15.80% | |
| 1Y Return | +5.18% | +26.12% | |
| 3Y Return (annualized) | +4.30% | +18.25% | |
| 5Y Return (annualized) | +0.89% | +12.51% | |
| Volatility (annualized) | 9.1% | 14.6% | |
| Max Drawdown | -33.5% | -58.8% | |
| Fund Family | Advisors Asset Management, Inc. | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Nov 19, 2019 | Nov 10, 2006 |
PFLD vs VYM Performance
AAM Low Duration Preferred and Income Securities ETF (PFLD) is a ETF from Advisors Asset Management, Inc. and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PFLD returned +5.18% while VYM returned +26.12%. Year to date, PFLD is up 2.64% versus a gain of 15.80% for VYM.
Over three years, PFLD compounded at +4.30% per year against +18.25% for VYM; over five years the annualized figures are +0.89% and +12.51% respectively. Across the full 7-year window we track, VYM has the edge at +7.07% annualized vs +1.25%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 9.1% for PFLD. 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 -33.5% for PFLD 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PFLD charges 0.45% per year while VYM charges 0.04%. On a $10,000 position that is $45 vs $4 annually, a gap of $41 per year that compounds over a long holding period. On income, PFLD currently yields 5.47% against 2.86% for VYM.
Holdings Overlap
PFLD and VYM share 31 holdings out of 757 unique holdings combined, representing a 7.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PFLD or VYM?
PFLD has an expense ratio of 0.45% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, PFLD or VYM?
Over the past year PFLD returned +5.18% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), PFLD annualized +1.25% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, PFLD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 9.1% for PFLD. Worst drawdown: PFLD -33.5% vs VYM -58.8%.
Should I hold both PFLD and VYM?
PFLD and VYM have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PFLD and VYM?
PFLD and VYM share 31 common holdings with a 7.0% weight overlap. Combined, they hold 757 unique securities.
Which pays a higher dividend, PFLD or VYM?
PFLD yields 5.47% while VYM yields 2.86%, so PFLD currently pays the higher dividend yield.
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