POWA vs VYM
Invesco Bloomberg Pricing Power ETF vs Vanguard High Dividend Yield ETF
Which is better, POWA or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. POWA led over the full window, VYM over 1Y, 3Y and 5Y. POWA is less concentrated, with 23.9% of the fund in its ten largest positions against 26.1%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | POWA | VYM |
|---|---|---|
| Expense Ratio | 0.40% | 0.04%Best |
| AUM | $175M | $81.6B |
| Dividend Yield | 0.94% | 2.22% |
| Holdings | 52 | 613 |
| YTD Return | -3.31% | +11.35%Best |
| 1Y Return | -2.58% | +15.34%Best |
| 3Y Return (annualized) | +9.84% | +17.22%Best |
| 5Y Return (annualized) | +6.33% | +12.30%Best |
| Volatility (annualized) | 13.3%Best | 14.6% |
| Max Drawdown | -47.9%Best | -58.8% |
| $10,000 over 5 years | $13,592 | $17,861Best |
| Top 10 Weight | 23.9%Best | 26.1% |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Dec 15, 2006 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Dec 15, 2006 to Sep 18, 2026 (19.8 years).
POWA vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.8 years both funds cover.
POWA vs VYM Performance
Invesco Bloomberg Pricing Power ETF (POWA) is an ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year POWA returned -2.58% while VYM returned +15.34%. Year to date, POWA is down 3.31% versus a gain of 11.35% for VYM.
Over three years, POWA compounded at +9.84% per year against +17.22% for VYM; over five years the annualized figures are +6.33% and +12.30% respectively. Across the full 20-year window we track, POWA has the edge at +8.30% annualized vs +6.70%.
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 13.3% for POWA. 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 -47.9% for POWA and -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
POWA charges 0.40% per year while VYM charges 0.04%. On a $10,000 position that is $40 vs $4 annually, a gap of $36 per year that compounds over a long holding period. On income, POWA currently yields 0.94% against 2.22% for VYM.
Holdings Overlap
39.9% of POWA's money is in holdings VYM also owns. 5.2% of VYM's money is in holdings POWA also owns.
The two portfolios partly overlap.
20 positions in common, counted across the 51 positions we hold weights for in POWA and 557 in VYM, against full books of 52 and 613.
What only one of them owns
Our book lists 508 positions for VYM that do not appear in our book for POWA (91.9% of the fund), and 29 for POWA that do not appear in VYM (56.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in POWA | Weight in VYM | Difference |
|---|---|---|---|
| HDHome Depot Inc/The | 2.04% | 1.34% | 0.70% |
| BBYBest Buy Co. Inc. | 2.54% | 0.07% | 2.47% |
| PEPPepsico Inc. | 1.81% | 0.77% | 1.04% |
| GRMNGarminltd. | 2.31% | 0.20% | 2.11% |
| GDGeneral Dynamics Corp. | 2.11% | 0.40% | 1.71% |
| CAHCardinal Health Inc. | 2.27% | 0.22% | 2.05% |
| FASTFastenal Co. | 2.18% | 0.22% | 1.96% |
| LOWLowes Cos., Inc. | 1.79% | 0.47% | 1.32% |
| SYYSysco Corp | 2.07% | 0.17% | 1.90% |
| TSCOTractor Supply Co. | 2.14% | 0.07% | 2.07% |
39.9% of POWA is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, POWA or VYM?
POWA has an expense ratio of 0.40% while VYM charges 0.04%. VYM is the cheaper option, by $36 a year on a $10,000 investment.
Which performed better, POWA or VYM?
Over the past year POWA returned -2.58% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), POWA annualized +8.30% vs +6.70% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, POWA or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.3% for POWA. Worst drawdown: POWA -47.9% vs VYM -58.8%.
Should I hold both POWA and VYM?
POWA and VYM have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between POWA and VYM?
39.9% of POWA's money is in holdings VYM also owns. 5.2% of VYM's is in holdings POWA also owns. They hold 20 positions in common, counted across the 51 positions we hold weights for in POWA and 557 in VYM.
Which pays a higher dividend, POWA or VYM?
POWA yields 0.94% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than POWA?
VYM has a lower expense ratio. POWA led over the full window, VYM over 1Y, 3Y and 5Y. POWA is less concentrated, with 23.9% of the fund in its ten largest positions against 26.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.