PPH vs VYM

Quick Verdict

VYM has a lower expense ratio. PPH delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.

Lower Fees: VYMHigher Returns: PPHMore Diversified: VYM

Side-by-Side Comparison

MetricPPHVYMWinner
Expense Ratio0.36%0.04%
AUM$985M$81.6B
Dividend Yield1.92%2.24%
Holdings27616
YTD Return+8.38%+16.42%
1Y Return+31.44%+24.22%
3Y Return (annualized)+12.51%+19.03%
5Y Return (annualized)+9.85%+12.21%
Volatility (annualized)14.8%14.6%
Max Drawdown-56.6%-58.8%
Fund FamilyVanEckVanguard (US)
CategoryEquityEquity
InceptionDec 20, 2011Nov 10, 2006

PPH vs VYM Performance

VanEck Pharmaceutical ETF (PPH) is a ETF from VanEck and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PPH returned +31.44% while VYM returned +24.22%. Year to date, PPH is up 8.38% versus a gain of 16.42% for VYM.

Over three years, PPH compounded at +12.51% per year against +19.03% for VYM; over five years the annualized figures are +9.85% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs +4.13%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

PPH has been the more volatile fund, with annualized monthly volatility of 14.8% 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 -56.6% for PPH 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PPH charges 0.36% per year while VYM charges 0.04%. On a $10,000 position that is $36 vs $4 annually, a gap of $32 per year that compounds over a long holding period. On income, PPH currently yields 1.92% against 2.24% for VYM.

Holdings Overlap

6.9%overlap

PPH and VYM share 8 holdings out of 620 unique holdings combined, representing a 6.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PPHWeight in VYMDifference
MRK9.79%1.32%8.47%
JNJ4.40%2.54%1.86%
ABBV4.46%1.85%2.61%
BMYProProPro
PFEProProPro
VTRSProProPro
OGNProProPro
PRGOProProPro
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Frequently Asked Questions

Which is cheaper, PPH or VYM?

PPH has an expense ratio of 0.36% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $32 per year of difference.

Which performed better, PPH or VYM?

Over the past year PPH returned +31.44% vs +24.22% for VYM, so PPH leads on 1-year performance. Over the longest common window we track (20 years), PPH annualized +4.13% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, PPH or VYM?

PPH has been the more volatile fund at 14.8% annualized versus 14.6% for VYM. Worst drawdown: PPH -56.6% vs VYM -58.8%.

Should I hold both PPH and VYM?

PPH and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PPH and VYM?

PPH and VYM share 8 common holdings with a 6.9% weight overlap. Combined, they hold 620 unique securities.

Which pays a higher dividend, PPH or VYM?

PPH yields 1.92% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.

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