PVI 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

MetricPVIVYMWinner
Expense Ratio0.25%0.04%
AUM$32M$79.0B
Dividend Yield2.13%2.86%
Holdings136568
YTD Return+1.07%+16.16%
1Y Return+2.03%+26.05%
3Y Return (annualized)+2.50%+18.43%
5Y Return (annualized)+1.97%+12.21%
Volatility (annualized)0.5%14.6%
Max Drawdown-4.8%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryTax PreferredEquity
InceptionNov 15, 2007Nov 10, 2006

PVI vs VYM Performance

Invesco Floating Rate Municipal Income ETF (PVI) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PVI returned +2.03% while VYM returned +26.05%. Year to date, PVI is up 1.07% versus a gain of 16.16% for VYM.

Over three years, PVI compounded at +2.50% per year against +18.43% for VYM; over five years the annualized figures are +1.97% and +12.21% respectively. Across the full 19-year window we track, VYM has the edge at +7.09% annualized vs +0.49%. 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 0.5% for PVI. 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 -4.8% for PVI 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 -0.06. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PVI charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, PVI currently yields 2.13% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

PVI and VYM share 0 holdings out of 635 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, PVI or VYM?

PVI has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.

Which performed better, PVI or VYM?

Over the past year PVI returned +2.03% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), PVI annualized +0.49% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, PVI or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 0.5% for PVI. Worst drawdown: PVI -4.8% vs VYM -58.8%.

Should I hold both PVI and VYM?

PVI and VYM have a monthly-return correlation of -0.06, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PVI and VYM?

PVI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 635 unique securities.

Which pays a higher dividend, PVI or VYM?

PVI yields 2.13% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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