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

MetricPSMDVYMWinner
Expense Ratio0.49%0.04%
AUM$93M$79.0B
Dividend Yield0.00%2.86%
Holdings6568
YTD Return+7.55%+15.80%
1Y Return+13.30%+26.12%
3Y Return (annualized)+12.35%+18.25%
5Y Return (annualized)+9.37%+12.51%
Volatility (annualized)7.5%14.6%
Max Drawdown-12.0%-58.8%
Fund FamilyPacer ETFsVanguard (US)
CategoryAllocation/BalancedEquity
InceptionDec 22, 2020Nov 10, 2006

PSMD vs VYM Performance

Pacer Swan SOS Moderate (January) ETF (PSMD) is a ETF from Pacer ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PSMD returned +13.30% while VYM returned +26.12%. Year to date, PSMD is up 7.55% versus a gain of 15.80% for VYM.

Over three years, PSMD compounded at +12.35% per year against +18.25% for VYM; over five years the annualized figures are +9.37% and +12.51% respectively. Across the full 6-year window we track, PSMD has the edge at +9.94% 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 7.5% for PSMD. 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 -12.0% for PSMD 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

PSMD 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, PSMD currently yields 0.00% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

PSMD 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, PSMD or VYM?

PSMD 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, PSMD or VYM?

Over the past year PSMD returned +13.30% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), PSMD annualized +9.94% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, PSMD or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 7.5% for PSMD. Worst drawdown: PSMD -12.0% vs VYM -58.8%.

Should I hold both PSMD and VYM?

PSMD 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 PSMD and VYM?

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

Which pays a higher dividend, PSMD or VYM?

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

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