PWZ vs VYM
Invesco California AMT-Free Municipal Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. PWZ offers more diversification with 1,175 holdings.
Side-by-Side Comparison
| Metric | PWZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.04% | |
| AUM | $1.2B | $81.6B | |
| Dividend Yield | 3.73% | 2.24% | |
| Holdings | 1,175 | 616 | |
| YTD Return | +1.19% | +14.66% | |
| 1Y Return | +7.59% | +22.16% | |
| 3Y Return (annualized) | +3.22% | +18.72% | |
| 5Y Return (annualized) | -0.13% | +12.18% | |
| Volatility (annualized) | 7.0% | 14.6% | |
| Max Drawdown | -24.7% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Oct 11, 2007 | Nov 10, 2006 |
PWZ vs VYM Performance
Invesco California AMT-Free Municipal Bond ETF (PWZ) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PWZ returned +7.59% while VYM returned +22.16%. Year to date, PWZ is up 1.19% versus a gain of 14.66% for VYM.
Over three years, PWZ compounded at +3.22% per year against +18.72% for VYM; over five years the annualized figures are -0.13% and +12.18% respectively. Across the full 19-year window we track, VYM has the edge at +7.01% annualized vs +0.63%. 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 7.0% for PWZ. 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 -24.7% for PWZ 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PWZ charges 0.28% per year while VYM charges 0.04%. On a $10,000 position that is $28 vs $4 annually, a gap of $24 per year that compounds over a long holding period. On income, PWZ currently yields 3.73% against 2.24% for VYM.
Holdings Overlap
PWZ and VYM share 0 holdings out of 1110 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, PWZ or VYM?
PWZ has an expense ratio of 0.28% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, PWZ or VYM?
Over the past year PWZ returned +7.59% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), PWZ annualized +0.63% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, PWZ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.0% for PWZ. Worst drawdown: PWZ -24.7% vs VYM -58.8%.
Should I hold both PWZ and VYM?
PWZ and VYM have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PWZ and VYM?
PWZ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1110 unique securities.
Which pays a higher dividend, PWZ or VYM?
PWZ yields 3.73% while VYM yields 2.24%, so PWZ currently pays the higher dividend yield.
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