PVI vs VYM
Invesco Floating Rate Municipal Income 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 | PVI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.04% | |
| AUM | $32M | $79.0B | |
| Dividend Yield | 2.13% | 2.86% | |
| Holdings | 136 | 568 | |
| 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 Family | Invesco (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 15, 2007 | Nov 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
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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