PWV vs VYM

Quick Verdict

VYM has a lower expense ratio. PWV delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: PWVMore Diversified: VYM

Side-by-Side Comparison

MetricPWVVYMWinner
Expense Ratio0.55%0.04%
AUM$1.7B$79.0B
Dividend Yield1.74%2.86%
Holdings52568
YTD Return+22.58%+16.53%
1Y Return+31.54%+25.03%
3Y Return (annualized)+21.11%+18.54%
5Y Return (annualized)+14.49%+12.25%
Volatility (annualized)14.5%14.6%
Max Drawdown-50.7%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
InceptionMar 3, 2005Nov 10, 2006

PWV vs VYM Performance

Invesco Large Cap Value ETF (PWV) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PWV returned +31.54% while VYM returned +25.03%. Year to date, PWV is up 22.58% versus a gain of 16.53% for VYM.

Over three years, PWV compounded at +21.11% per year against +18.54% for VYM; over five years the annualized figures are +14.49% and +12.25% respectively. Across the full 20-year window we track, PWV has the edge at +8.77% 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 14.5% for PWV. 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 -50.7% for PWV 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

PWV charges 0.55% per year while VYM charges 0.04%. On a $10,000 position that is $55 vs $4 annually, a gap of $51 per year that compounds over a long holding period. On income, PWV currently yields 1.74% against 2.86% for VYM.

Holdings Overlap

31.4%overlap

PWV and VYM share 43 holdings out of 566 unique holdings combined, representing a 31.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PWVWeight in VYMDifference
JPM:US3.46%3.36%0.10%
JNJ3.62%2.62%1.00%
XOM2.92%2.83%0.09%
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Frequently Asked Questions

Which is cheaper, PWV or VYM?

PWV has an expense ratio of 0.55% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $51 per year of difference.

Which performed better, PWV or VYM?

Over the past year PWV returned +31.54% vs +25.03% for VYM, so PWV leads on 1-year performance. Over the longest common window we track (20 years), PWV annualized +8.77% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, PWV or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 14.5% for PWV. Worst drawdown: PWV -50.7% vs VYM -58.8%.

Should I hold both PWV and VYM?

PWV and VYM have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between PWV and VYM?

PWV and VYM share 43 common holdings with a 31.4% weight overlap. Combined, they hold 566 unique securities.

Which pays a higher dividend, PWV or VYM?

PWV yields 1.74% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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