PGZ vs VYM
Principal Real Estate Income Fund 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 | PGZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.16% | 0.04% | |
| AUM | $74M | $81.6B | |
| Dividend Yield | 11.39% | 2.24% | |
| Holdings | 110 | 616 | |
| YTD Return | +8.23% | +15.84% | |
| 1Y Return | +7.94% | +23.95% | |
| 3Y Return (annualized) | +15.01% | +19.02% | |
| 5Y Return (annualized) | +2.50% | +12.19% | |
| Volatility (annualized) | 21.2% | 14.6% | |
| Max Drawdown | -68.8% | -58.8% | |
| Fund Family | Principal Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 26, 2013 | Nov 10, 2006 |
PGZ vs VYM Performance
Principal Real Estate Income Fund (PGZ) is a ETF from Principal Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PGZ returned +7.94% while VYM returned +23.95%. Year to date, PGZ is up 8.23% versus a gain of 15.84% for VYM.
Over three years, PGZ compounded at +15.01% per year against +19.02% for VYM; over five years the annualized figures are +2.50% and +12.19% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs -1.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PGZ has been the more volatile fund, with annualized monthly volatility of 21.2% 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 -68.8% for PGZ 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PGZ charges 2.16% per year while VYM charges 0.04%. On a $10,000 position that is $216 vs $4 annually, a gap of $212 per year that compounds over a long holding period. On income, PGZ currently yields 11.39% against 2.24% for VYM.
Holdings Overlap
PGZ and VYM share 0 holdings out of 664 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PGZ or VYM?
PGZ has an expense ratio of 2.16% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $212 per year of difference.
Which performed better, PGZ or VYM?
Over the past year PGZ returned +7.94% vs +23.95% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PGZ annualized -1.63% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, PGZ or VYM?
PGZ has been the more volatile fund at 21.2% annualized versus 14.6% for VYM. Worst drawdown: PGZ -68.8% vs VYM -58.8%.
Should I hold both PGZ and VYM?
PGZ and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PGZ and VYM?
PGZ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 664 unique securities.
Which pays a higher dividend, PGZ or VYM?
PGZ yields 11.39% while VYM yields 2.24%, so PGZ currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.