PPEM vs VYM
Putnam PanAgora ESG Emerging Markets Equity ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. PPEM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | PPEM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $2M | $79.0B | |
| Dividend Yield | 49.41% | 2.86% | |
| Holdings | 116 | 568 | |
| YTD Return | +28.48% | +15.80% | |
| 1Y Return | +55.32% | +26.12% | |
| 3Y Return (annualized) | +24.92% | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 16.7% | 14.6% | |
| Max Drawdown | -18.4% | -58.8% | |
| Fund Family | Putnam Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 19, 2023 | Nov 10, 2006 |
PPEM vs VYM Performance
Putnam PanAgora ESG Emerging Markets Equity ETF (PPEM) is a ETF from Putnam Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PPEM returned +55.32% while VYM returned +26.12%. Year to date, PPEM is up 28.48% versus a gain of 15.80% for VYM.
Over three years, PPEM compounded at +24.92% per year against +18.25% for VYM. Across the full 3-year window we track, PPEM has the edge at +21.29% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PPEM has been the more volatile fund, with annualized monthly volatility of 16.7% 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 -18.4% for PPEM 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PPEM charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, PPEM currently yields 49.41% against 2.86% for VYM.
Holdings Overlap
PPEM and VYM share 1 holdings out of 666 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PPEM | Weight in VYM | Difference |
|---|---|---|---|
| TEL | 0.24% | 0.30% | 0.06% |
Frequently Asked Questions
Which is cheaper, PPEM or VYM?
PPEM has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, PPEM or VYM?
Over the past year PPEM returned +55.32% vs +26.12% for VYM, so PPEM leads on 1-year performance. Over the longest common window we track (3 years), PPEM annualized +21.29% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, PPEM or VYM?
PPEM has been the more volatile fund at 16.7% annualized versus 14.6% for VYM. Worst drawdown: PPEM -18.4% vs VYM -58.8%.
Should I hold both PPEM and VYM?
PPEM and VYM have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PPEM and VYM?
PPEM and VYM share 1 common holdings with a 0.2% weight overlap. Combined, they hold 666 unique securities.
Which pays a higher dividend, PPEM or VYM?
PPEM yields 49.41% while VYM yields 2.86%, so PPEM currently pays the higher dividend yield.
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