PSP vs VYM
Invesco Global Listed Private Equity ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | PSP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.80% | 0.04% | |
| AUM | $230M | $79.0B | |
| Dividend Yield | 6.40% | 2.86% | |
| Holdings | 73 | 568 | |
| YTD Return | -3.40% | +16.16% | |
| 1Y Return | -4.54% | +26.05% | |
| 3Y Return (annualized) | +12.25% | +18.43% | |
| 5Y Return (annualized) | +0.70% | +12.21% | |
| Volatility (annualized) | 25.3% | 14.6% | |
| Max Drawdown | -87.1% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 24, 2006 | Nov 10, 2006 |
PSP vs VYM Performance
Invesco Global Listed Private Equity ETF (PSP) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PSP returned -4.54% while VYM returned +26.05%. Year to date, PSP is down 3.40% versus a gain of 16.16% for VYM.
Over three years, PSP compounded at +12.25% per year against +18.43% for VYM; over five years the annualized figures are +0.70% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.09% annualized vs -1.74%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PSP has been the more volatile fund, with annualized monthly volatility of 25.3% 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 -87.1% for PSP 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSP charges 1.80% per year while VYM charges 0.04%. On a $10,000 position that is $180 vs $4 annually, a gap of $176 per year that compounds over a long holding period. On income, PSP currently yields 6.40% against 2.86% for VYM.
Holdings Overlap
PSP and VYM share 6 holdings out of 616 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PSP or VYM?
PSP has an expense ratio of 1.80% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $176 per year of difference.
Which performed better, PSP or VYM?
Over the past year PSP returned -4.54% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), PSP annualized -1.74% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, PSP or VYM?
PSP has been the more volatile fund at 25.3% annualized versus 14.6% for VYM. Worst drawdown: PSP -87.1% vs VYM -58.8%.
Should I hold both PSP and VYM?
PSP and VYM have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PSP and VYM?
PSP and VYM share 6 common holdings with a 0.5% weight overlap. Combined, they hold 616 unique securities.
Which pays a higher dividend, PSP or VYM?
PSP yields 6.40% while VYM yields 2.86%, so PSP currently pays the higher dividend yield.
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