PSI vs VYM
Invesco Semiconductors ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. PSI delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | PSI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.04% | |
| AUM | $2.7B | $81.6B | |
| Dividend Yield | 0.04% | 2.24% | |
| Holdings | 32 | 616 | |
| YTD Return | +76.58% | +15.75% | |
| 1Y Return | +137.99% | +23.85% | |
| 3Y Return (annualized) | +49.21% | +19.14% | |
| 5Y Return (annualized) | +29.45% | +12.45% | |
| Volatility (annualized) | 28.9% | 14.6% | |
| Max Drawdown | -99.6% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 23, 2005 | Nov 10, 2006 |
PSI vs VYM Performance
Invesco Semiconductors ETF (PSI) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PSI returned +137.99% while VYM returned +23.85%. Year to date, PSI is up 76.58% versus a gain of 15.75% for VYM.
Over three years, PSI compounded at +49.21% per year against +19.14% for VYM; over five years the annualized figures are +29.45% and +12.45% respectively. Across the full 20-year window we track, PSI has the edge at +17.40% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PSI has been the more volatile fund, with annualized monthly volatility of 28.9% 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 -99.6% for PSI 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PSI charges 0.56% per year while VYM charges 0.04%. On a $10,000 position that is $56 vs $4 annually, a gap of $52 per year that compounds over a long holding period. On income, PSI currently yields 0.04% against 2.24% for VYM.
Holdings Overlap
PSI and VYM share 3 holdings out of 631 unique holdings combined, representing a 0.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PSI or VYM?
PSI has an expense ratio of 0.56% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, PSI or VYM?
Over the past year PSI returned +137.99% vs +23.85% for VYM, so PSI leads on 1-year performance. Over the longest common window we track (20 years), PSI annualized +17.40% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, PSI or VYM?
PSI has been the more volatile fund at 28.9% annualized versus 14.6% for VYM. Worst drawdown: PSI -99.6% vs VYM -58.8%.
Should I hold both PSI and VYM?
PSI and VYM have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSI and VYM?
PSI and VYM share 3 common holdings with a 0.9% weight overlap. Combined, they hold 631 unique securities.
Which pays a higher dividend, PSI or VYM?
PSI yields 0.04% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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