PGX vs VYM
Invesco Preferred 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 616 holdings.
Side-by-Side Comparison
| Metric | PGX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $3.8B | $81.6B | |
| Dividend Yield | 6.38% | 2.24% | |
| Holdings | 270 | 616 | |
| YTD Return | -2.33% | +16.42% | |
| 1Y Return | -0.78% | +24.22% | |
| 3Y Return (annualized) | +4.60% | +19.03% | |
| 5Y Return (annualized) | -1.18% | +12.21% | |
| Volatility (annualized) | 14.4% | 14.6% | |
| Max Drawdown | -69.5% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jan 31, 2008 | Nov 10, 2006 |
PGX vs VYM Performance
Invesco Preferred ETF (PGX) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PGX returned -0.78% while VYM returned +24.22%. Year to date, PGX is down 2.33% versus a gain of 16.42% for VYM.
Over three years, PGX compounded at +4.60% per year against +19.03% for VYM; over five years the annualized figures are -1.18% and +12.21% respectively. Across the full 19-year window we track, VYM has the edge at +7.10% annualized vs -1.74%. 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 14.4% for PGX. 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 -69.5% for PGX 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PGX charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, PGX currently yields 6.38% against 2.24% for VYM.
Holdings Overlap
PGX and VYM share 36 holdings out of 794 unique holdings combined, representing a 6.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PGX or VYM?
PGX has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, PGX or VYM?
Over the past year PGX returned -0.78% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), PGX annualized -1.74% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, PGX or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.4% for PGX. Worst drawdown: PGX -69.5% vs VYM -58.8%.
Should I hold both PGX and VYM?
PGX and VYM have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PGX and VYM?
PGX and VYM share 36 common holdings with a 6.7% weight overlap. Combined, they hold 794 unique securities.
Which pays a higher dividend, PGX or VYM?
PGX yields 6.38% while VYM yields 2.24%, so PGX currently pays the higher dividend yield.
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