PSC vs VYM
PSC vs VYM
Principal U.S. Small-Cap Multi-Factor ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. PSC delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | PSC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.04% | |
| AUM | $2.2B | $79.0B | |
| Dividend Yield | 0.55% | 2.86% | |
| Holdings | 513 | 568 | |
| YTD Return | +20.69% | +15.80% | |
| 1Y Return | +33.12% | +26.12% | |
| 3Y Return (annualized) | +17.87% | +18.25% | |
| 5Y Return (annualized) | +9.84% | +12.51% | |
| Volatility (annualized) | 20.9% | 14.6% | |
| Max Drawdown | -47.9% | -58.8% | |
| Fund Family | Principal Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 21, 2016 | Nov 10, 2006 |
PSC vs VYM Performance
Principal U.S. Small-Cap Multi-Factor ETF (PSC) is a ETF from Principal Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PSC returned +33.12% while VYM returned +26.12%. Year to date, PSC is up 20.69% versus a gain of 15.80% for VYM.
Over three years, PSC compounded at +17.87% per year against +18.25% for VYM; over five years the annualized figures are +9.84% and +12.51% respectively. Across the full 10-year window we track, PSC has the edge at +11.49% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PSC has been the more volatile fund, with annualized monthly volatility of 20.9% 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 -47.9% for PSC 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSC charges 0.38% per year while VYM charges 0.04%. On a $10,000 position that is $38 vs $4 annually, a gap of $34 per year that compounds over a long holding period. On income, PSC currently yields 0.55% against 2.86% for VYM.
Holdings Overlap
PSC and VYM share 66 holdings out of 1001 unique holdings combined, representing a 0.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PSC | Weight in VYM | Difference |
|---|---|---|---|
| BFH | 0.78% | 0.01% | 0.77% |
| PTEN | 0.67% | 0.01% | 0.66% |
| WT | 0.66% | 0.01% | 0.65% |
| HWC | Pro | Pro | Pro |
| LBRT | Pro | Pro | Pro |
| FCFS | Pro | Pro | Pro |
| BKH | Pro | Pro | Pro |
| SIGI | Pro | Pro | Pro |
| AUB | Pro | Pro | Pro |
| TEX | Pro | Pro | Pro |
See all 10 holdings PSC shares with VYM Exact weights in each fund and the difference, for every overlapping position. X-ray my whole portfolio$99/yr Pro · 7-day refund | |||
Frequently Asked Questions
Which is cheaper, PSC or VYM?
PSC has an expense ratio of 0.38% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, PSC or VYM?
Over the past year PSC returned +33.12% vs +26.12% for VYM, so PSC leads on 1-year performance. Over the longest common window we track (10 years), PSC annualized +11.49% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, PSC or VYM?
PSC has been the more volatile fund at 20.9% annualized versus 14.6% for VYM. Worst drawdown: PSC -47.9% vs VYM -58.8%.
Should I hold both PSC and VYM?
PSC and VYM have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSC and VYM?
PSC and VYM share 66 common holdings with a 0.9% weight overlap. Combined, they hold 1001 unique securities.
Which pays a higher dividend, PSC or VYM?
PSC yields 0.55% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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