PSEP vs VYM
PSEP vs VYM
Innovator U.S. Equity Power Buffer ETF - September 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 558 holdings.
Side-by-Side Comparison
| Metric | PSEP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.04% | |
| AUM | $843M | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 6 | 568 | |
| YTD Return | +6.68% | +15.80% | |
| 1Y Return | +12.16% | +26.12% | |
| 3Y Return (annualized) | +12.10% | +18.25% | |
| 5Y Return (annualized) | +9.54% | +12.51% | |
| Volatility (annualized) | 8.4% | 14.6% | |
| Max Drawdown | -17.9% | -58.8% | |
| Fund Family | Innovator ETFs Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 30, 2019 | Nov 10, 2006 |
PSEP vs VYM Performance
Innovator U.S. Equity Power Buffer ETF - September (PSEP) is a ETF from Innovator ETFs Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PSEP returned +12.16% while VYM returned +26.12%. Year to date, PSEP is up 6.68% versus a gain of 15.80% for VYM.
Over three years, PSEP compounded at +12.10% per year against +18.25% for VYM; over five years the annualized figures are +9.54% and +12.51% respectively. Across the full 7-year window we track, PSEP has the edge at +9.68% annualized vs +7.07%. 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 8.4% for PSEP. 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 -17.9% for PSEP 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSEP charges 0.79% per year while VYM charges 0.04%. On a $10,000 position that is $79 vs $4 annually, a gap of $75 per year that compounds over a long holding period. On income, PSEP currently yields 0.00% against 2.86% for VYM.
Frequently Asked Questions
Which is cheaper, PSEP or VYM?
PSEP has an expense ratio of 0.79% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $75 per year of difference.
Which performed better, PSEP or VYM?
Over the past year PSEP returned +12.16% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), PSEP annualized +9.68% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, PSEP or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.4% for PSEP. Worst drawdown: PSEP -17.9% vs VYM -58.8%.
Should I hold both PSEP and VYM?
PSEP and VYM have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, PSEP or VYM?
PSEP yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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