PSMO 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

MetricPSMOVYMWinner
Expense Ratio0.49%0.04%
AUM$99M$79.0B
Dividend Yield0.00%2.86%
Holdings6568
YTD Return+7.61%+15.80%
1Y Return+12.82%+26.12%
3Y Return (annualized)+12.17%+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)6.8%14.6%
Max Drawdown-9.8%-58.8%
Fund FamilyPacer ETFsVanguard (US)
CategoryAllocation/BalancedEquity
InceptionSep 30, 2021Nov 10, 2006

PSMO vs VYM Performance

Pacer Swan SOS Moderate October ETF (PSMO) is a ETF from Pacer ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PSMO returned +12.82% while VYM returned +26.12%. Year to date, PSMO is up 7.61% versus a gain of 15.80% for VYM.

Over three years, PSMO compounded at +12.17% per year against +18.25% for VYM. Across the full 5-year window we track, PSMO has the edge at +10.27% 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 6.8% for PSMO. 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 -9.8% for PSMO 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 0.77. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

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

Holdings Overlap

0.0%overlap

PSMO 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, PSMO or VYM?

PSMO 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, PSMO or VYM?

Over the past year PSMO returned +12.82% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), PSMO annualized +10.27% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, PSMO or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 6.8% for PSMO. Worst drawdown: PSMO -9.8% vs VYM -58.8%.

Should I hold both PSMO and VYM?

PSMO and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PSMO and VYM?

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

Which pays a higher dividend, PSMO or VYM?

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

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