PSFM vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricPSFMVYMWinner
Expense Ratio0.49%0.04%
AUM$25M$79.0B
Dividend Yield0.00%2.86%
Holdings7568
YTD Return+11.27%+16.10%
1Y Return+15.68%+25.99%
3Y Return (annualized)+13.10%+18.29%
5Y Return (annualized)+9.75%+12.35%
Volatility (annualized)9.3%14.6%
Max Drawdown-14.3%-58.8%
Fund FamilyPacer ETFsVanguard (US)
CategoryAlternativeEquity
InceptionMar 31, 2021Nov 10, 2006

PSFM vs VYM Performance

Pacer Swan SOS Flex (April) ETF (PSFM) is a ETF from Pacer ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PSFM returned +15.68% while VYM returned +25.99%. Year to date, PSFM is up 11.27% versus a gain of 16.10% for VYM.

Over three years, PSFM compounded at +13.10% per year against +18.29% for VYM; over five years the annualized figures are +9.75% and +12.35% respectively. Across the full 5-year window we track, PSFM has the edge at +10.50% annualized vs +7.08%. 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 9.3% for PSFM. 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 -14.3% for PSFM 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

PSFM charges 0.49% per year while VYM charges 0.04%. On a $10,000 position that is $49 vs $4 annually, a gap of $45 per year that compounds over a long holding period. On income, PSFM currently yields 0.00% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

PSFM and VYM share 0 holdings out of 559 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, PSFM or VYM?

PSFM has an expense ratio of 0.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $45 per year of difference.

Which performed better, PSFM or VYM?

Over the past year PSFM returned +15.68% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), PSFM annualized +10.50% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, PSFM or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 9.3% for PSFM. Worst drawdown: PSFM -14.3% vs VYM -58.8%.

Should I hold both PSFM and VYM?

PSFM 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 PSFM and VYM?

PSFM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.

Which pays a higher dividend, PSFM or VYM?

PSFM yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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