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 613 holdings.
Side-by-Side Comparison
| Metric | PVI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.04% | |
| AUM | $31M | $81.6B | |
| Dividend Yield | 2.17% | 2.24% | |
| Holdings | 154 | 613 | |
| YTD Return | +1.45% | +14.87% | |
| 1Y Return | +2.26% | +21.39% | |
| 3Y Return (annualized) | +2.56% | +18.69% | |
| 5Y Return (annualized) | +2.06% | +11.98% | |
| Volatility (annualized) | 0.6% | 14.5% | |
| 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 +2.26% while VYM returned +21.39%. Year to date, PVI is up 1.45% versus a gain of 14.87% for VYM.
Over three years, PVI compounded at +2.56% per year against +18.69% for VYM; over five years the annualized figures are +2.06% and +11.98% respectively. Across the full 19-year window we track, VYM has the edge at +7.00% annualized vs +0.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 0.6% 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 -0.05. 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 2.17% against 2.24% for VYM.
Holdings Overlap
PVI and VYM share 0 holdings out of 670 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 +2.26% vs +21.39% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), PVI annualized +0.51% vs +7.00% for VYM. Past performance does not guarantee future results.
Which is riskier, PVI or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 0.6% 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 -0.05, 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 670 unique securities.
Which pays a higher dividend, PVI or VYM?
PVI yields 2.17% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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