PSEP vs VYM
Innovator U.S. Equity Power Buffer ETF - September vs Vanguard High Dividend Yield ETF
Which is better, PSEP or VYM?
Option Writing against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 37.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PSEP | VYM |
|---|---|---|
| Expense Ratio | 0.79% | 0.04%Best |
| AUM | $815M | $81.6B |
| Dividend Yield | 0.00% | 2.22% |
| Holdings | 12 | 613 |
| YTD Return | +7.02% | +11.35%Best |
| 1Y Return | +9.35% | +15.34%Best |
| 3Y Return (annualized) | +12.28% | +17.22%Best |
| 5Y Return (annualized) | +9.93% | +12.30%Best |
| Volatility (annualized) | 8.4%Best | 15.4% |
| Max Drawdown | -17.9%Best | -35.7% |
| $10,000 over 5 years | $16,054 | $17,861Best |
| Top 10 Weight | 37.8% | 26.1%Best |
| Fund Family | Innovator ETFs Trust | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Option Writing | Large Cap Value |
| Inception | Aug 30, 2019 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Sep 3, 2019 to Sep 18, 2026 (7 years).
PSEP vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7 years both funds cover.
PSEP vs VYM Performance
Innovator U.S. Equity Power Buffer ETF - September (PSEP) is an ETF from Innovator ETFs Trust and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year PSEP returned +9.35% while VYM returned +15.34%. Year to date, PSEP is up 7.02% versus a gain of 11.35% for VYM.
Over three years, PSEP compounded at +12.28% per year against +17.22% for VYM; over five years the annualized figures are +9.93% and +12.30% respectively. Across the full 7-year window we track, VYM has the edge at +11.66% annualized vs +9.56%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 2.22% for VYM.
Holdings Overlap
32.9% of PSEP's money is in holdings VYM also owns. 86.7% of VYM's money is in holdings PSEP also owns.
Most of VYM is already inside PSEP. Owning both mostly buys the same companies twice.
242 positions in common, counted across the 491 positions we hold weights for in PSEP and 557 in VYM, against full books of 12 and 613.
What only one of them owns
Our book lists 287 positions for VYM that do not appear in our book for PSEP (10.6% of the fund), and 246 for PSEP that do not appear in VYM (65.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in PSEP | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 2.51% | 7.35% | 4.84% |
| JPMJpmorgan Chase | 1.44% | 3.82% | 2.38% |
| XOMExxonmobil Holdings Corp Common Stock Usd | 1.00% | 2.63% | 1.63% |
| JNJJohnson & Johnson - Common | 0.99% | 2.51% | 1.52% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.64% | 1.86% | 1.22% |
| ABBVAbbvie Inc. | 0.68% | 1.80% | 1.12% |
| CVXChevron Corp | 0.59% | 1.48% | 0.89% |
| UNHUnitedhealth Group Incorporated | 0.54% | 1.52% | 0.98% |
| CATCaterpillar, Inc. | 0.55% | 1.50% | 0.95% |
| KOCoca Cola Co. | 0.51% | 1.38% | 0.87% |
86.7% of VYM is already inside PSEP.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $75 a year on a $10,000 investment.
Which performed better, PSEP or VYM?
Over the past year PSEP returned +9.35% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), PSEP annualized +9.56% vs +11.66% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PSEP or VYM?
VYM has been the more volatile fund at 15.4% annualized versus 8.4% for PSEP. Worst drawdown: PSEP -17.9% vs VYM -35.7%.
Should I hold both PSEP and VYM?
PSEP and VYM have a monthly-return correlation of 0.87, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PSEP and VYM?
86.7% of VYM's money is in holdings PSEP also owns. 86.7% of VYM's is in holdings PSEP also owns. They hold 242 positions in common, counted across the 491 positions we hold weights for in PSEP and 557 in VYM.
Which pays a higher dividend, PSEP or VYM?
PSEP yields 0.00% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than PSEP?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.