PSCM vs VYM
Invesco S&P SmallCap Materials ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. PSCM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | PSCM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.04% | |
| AUM | $21M | $81.6B | |
| Dividend Yield | 1.05% | 2.24% | |
| Holdings | 27 | 616 | |
| YTD Return | +18.41% | +14.84% | |
| 1Y Return | +29.36% | +20.88% | |
| 3Y Return (annualized) | +14.99% | +18.34% | |
| 5Y Return (annualized) | +9.84% | +12.04% | |
| Volatility (annualized) | 24.4% | 14.6% | |
| Max Drawdown | -52.5% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 7, 2010 | Nov 10, 2006 |
PSCM vs VYM Performance
Invesco S&P SmallCap Materials ETF (PSCM) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PSCM returned +29.36% while VYM returned +20.88%. Year to date, PSCM is up 18.41% versus a gain of 14.84% for VYM.
Over three years, PSCM compounded at +14.99% per year against +18.34% for VYM; over five years the annualized figures are +9.84% and +12.04% respectively. Across the full 16-year window we track, PSCM has the edge at +9.01% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PSCM has been the more volatile fund, with annualized monthly volatility of 24.4% 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 -52.5% for PSCM 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSCM charges 0.29% per year while VYM charges 0.04%. On a $10,000 position that is $29 vs $4 annually, a gap of $25 per year that compounds over a long holding period. On income, PSCM currently yields 1.05% against 2.24% for VYM.
Holdings Overlap
PSCM and VYM share 10 holdings out of 618 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PSCM or VYM?
PSCM has an expense ratio of 0.29% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, PSCM or VYM?
Over the past year PSCM returned +29.36% vs +20.88% for VYM, so PSCM leads on 1-year performance. Over the longest common window we track (16 years), PSCM annualized +9.01% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, PSCM or VYM?
PSCM has been the more volatile fund at 24.4% annualized versus 14.6% for VYM. Worst drawdown: PSCM -52.5% vs VYM -58.8%.
Should I hold both PSCM and VYM?
PSCM and VYM have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSCM and VYM?
PSCM and VYM share 10 common holdings with a 0.1% weight overlap. Combined, they hold 618 unique securities.
Which pays a higher dividend, PSCM or VYM?
PSCM yields 1.05% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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