PSL 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

MetricPSLVYMWinner
Expense Ratio0.60%0.04%
AUM$84M$79.0B
Dividend Yield0.75%2.86%
Holdings50568
YTD Return+13.90%+16.16%
1Y Return+3.70%+26.05%
3Y Return (annualized)+10.04%+18.43%
5Y Return (annualized)+5.52%+12.21%
Volatility (annualized)13.9%14.6%
Max Drawdown-42.0%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
InceptionOct 12, 2006Nov 10, 2006

PSL vs VYM Performance

Invesco Dorsey Wright Consumer Staples Momentum ETF (PSL) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PSL returned +3.70% while VYM returned +26.05%. Year to date, PSL is up 13.90% versus a gain of 16.16% for VYM.

Over three years, PSL compounded at +10.04% per year against +18.43% for VYM; over five years the annualized figures are +5.52% and +12.21% respectively. Across the full 20-year window we track, PSL has the edge at +8.25% annualized vs +7.09%. 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 13.9% for PSL. 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 -42.0% for PSL 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

PSL charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, PSL currently yields 0.75% against 2.86% for VYM.

Holdings Overlap

5.9%overlap

PSL and VYM share 16 holdings out of 590 unique holdings combined, representing a 5.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PSLWeight in VYMDifference
PM3.84%1.28%2.56%
KO2.64%1.39%1.25%
MO3.44%0.51%2.93%
PGProProPro
KRProProPro
ADMProProPro
ELProProPro
BGProProPro
SYYProProPro
TSNProProPro
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Frequently Asked Questions

Which is cheaper, PSL or VYM?

PSL has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.

Which performed better, PSL or VYM?

Over the past year PSL returned +3.70% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PSL annualized +8.25% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, PSL or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 13.9% for PSL. Worst drawdown: PSL -42.0% vs VYM -58.8%.

Should I hold both PSL and VYM?

PSL and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PSL and VYM?

PSL and VYM share 16 common holdings with a 5.9% weight overlap. Combined, they hold 590 unique securities.

Which pays a higher dividend, PSL or VYM?

PSL yields 0.75% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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