PQDI vs VYM
Principal Spectrum Preferred and Income 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 616 holdings.
Side-by-Side Comparison
| Metric | PQDI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $70M | $81.6B | |
| Dividend Yield | 5.61% | 2.24% | |
| Holdings | 95 | 616 | |
| YTD Return | +1.47% | +15.34% | |
| 1Y Return | +4.94% | +23.24% | |
| 3Y Return (annualized) | +8.59% | +19.22% | |
| 5Y Return (annualized) | +2.99% | +12.21% | |
| Volatility (annualized) | 6.3% | 14.6% | |
| Max Drawdown | -17.4% | -58.8% | |
| Fund Family | Principal Funds | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jun 16, 2020 | Nov 10, 2006 |
PQDI vs VYM Performance
Principal Spectrum Preferred and Income ETF (PQDI) is a ETF from Principal Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PQDI returned +4.94% while VYM returned +23.24%. Year to date, PQDI is up 1.47% versus a gain of 15.34% for VYM.
Over three years, PQDI compounded at +8.59% per year against +19.22% for VYM; over five years the annualized figures are +2.99% and +12.21% respectively. Across the full 6-year window we track, VYM has the edge at +7.04% annualized vs +3.99%. 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 6.3% for PQDI. 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 -17.4% for PQDI 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PQDI 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, PQDI currently yields 5.61% against 2.24% for VYM.
Holdings Overlap
PQDI and VYM share 4 holdings out of 671 unique holdings combined, representing a 1.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PQDI or VYM?
PQDI 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, PQDI or VYM?
Over the past year PQDI returned +4.94% vs +23.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), PQDI annualized +3.99% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, PQDI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.3% for PQDI. Worst drawdown: PQDI -17.4% vs VYM -58.8%.
Should I hold both PQDI and VYM?
PQDI and VYM have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PQDI and VYM?
PQDI and VYM share 4 common holdings with a 1.6% weight overlap. Combined, they hold 671 unique securities.
Which pays a higher dividend, PQDI or VYM?
PQDI yields 5.61% while VYM yields 2.24%, so PQDI currently pays the higher dividend yield.
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