PSTP vs VYM
Innovator Power Buffer Step Up Strategy 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 | PSTP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.89% | 0.04% | |
| AUM | $132M | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 6 | 568 | |
| YTD Return | +5.99% | +16.53% | |
| 1Y Return | +9.80% | +25.03% | |
| 3Y Return (annualized) | +11.15% | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 8.3% | 14.6% | |
| Max Drawdown | -12.5% | -58.8% | |
| Fund Family | Innovator ETFs Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Mar 7, 2022 | Nov 10, 2006 |
PSTP vs VYM Performance
Innovator Power Buffer Step Up Strategy ETF (PSTP) is a ETF from Innovator ETFs Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PSTP returned +9.80% while VYM returned +25.03%. Year to date, PSTP is up 5.99% versus a gain of 16.53% for VYM.
Over three years, PSTP compounded at +11.15% per year against +18.54% for VYM. Across the full 4-year window we track, PSTP has the edge at +9.06% annualized vs +7.10%. 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 8.3% for PSTP. 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 -12.5% for PSTP 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PSTP charges 0.89% per year while VYM charges 0.04%. On a $10,000 position that is $89 vs $4 annually, a gap of $85 per year that compounds over a long holding period. On income, PSTP currently yields 0.00% against 2.86% for VYM.
Frequently Asked Questions
Which is cheaper, PSTP or VYM?
PSTP has an expense ratio of 0.89% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $85 per year of difference.
Which performed better, PSTP or VYM?
Over the past year PSTP returned +9.80% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), PSTP annualized +9.06% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, PSTP or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.3% for PSTP. Worst drawdown: PSTP -12.5% vs VYM -58.8%.
Should I hold both PSTP and VYM?
PSTP and VYM have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, PSTP or VYM?
PSTP yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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