PHB vs VYM
PHB vs VYM
Invesco Fundamental High Yield Corporate Bond 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 | PHB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $387M | $79.0B | |
| Dividend Yield | 5.06% | 2.86% | |
| Holdings | 268 | 568 | |
| YTD Return | +0.43% | +15.80% | |
| 1Y Return | +7.15% | +26.12% | |
| 3Y Return (annualized) | +8.52% | +18.25% | |
| 5Y Return (annualized) | +3.74% | +12.51% | |
| Volatility (annualized) | 16.1% | 14.6% | |
| Max Drawdown | -71.2% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2007 | Nov 10, 2006 |
PHB vs VYM Performance
Invesco Fundamental High Yield Corporate Bond ETF (PHB) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PHB returned +7.15% while VYM returned +26.12%. Year to date, PHB is up 0.43% versus a gain of 15.80% for VYM.
Over three years, PHB compounded at +8.52% per year against +18.25% for VYM; over five years the annualized figures are +3.74% and +12.51% respectively. Across the full 18-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
PHB has been the more volatile fund, with annualized monthly volatility of 16.1% 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 -71.2% for PHB 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PHB 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, PHB currently yields 5.06% against 2.86% for VYM.
Holdings Overlap
PHB and VYM share 0 holdings out of 818 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, PHB or VYM?
PHB 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, PHB or VYM?
Over the past year PHB returned +7.15% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), PHB annualized -1.63% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, PHB or VYM?
PHB has been the more volatile fund at 16.1% annualized versus 14.6% for VYM. Worst drawdown: PHB -71.2% vs VYM -58.8%.
Should I hold both PHB and VYM?
PHB and VYM have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PHB and VYM?
PHB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 818 unique securities.
Which pays a higher dividend, PHB or VYM?
PHB yields 5.06% while VYM yields 2.86%, so PHB currently pays the higher dividend yield.
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