PY vs VYM
Principal Value ETF vs Vanguard High Dividend Yield ETF
Which is better, PY or VYM?
Mid Cap Value against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. PY is less concentrated, with 25.8% of the fund in its ten largest positions against 26.1%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PY | VYM |
|---|---|---|
| Expense Ratio | 0.15% | 0.04%Best |
| AUM | $245M | $81.6B |
| Dividend Yield | 1.85% | 2.22% |
| Holdings | 100 | 613 |
| YTD Return | +10.55% | +12.29%Best |
| 1Y Return | +12.75% | +16.61%Best |
| 3Y Return (annualized) | +14.84% | +17.42%Best |
| 5Y Return (annualized) | +9.08% | +12.12%Best |
| Volatility (annualized) | 19.2% | 13.9%Best |
| Max Drawdown | -45.5% | -35.7%Best |
| $10,000 over 5 years | $15,443 | $17,718Best |
| Top 10 Weight | 25.8%Best | 26.1% |
| Fund Family | Principal Funds | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Value | Large Cap Value |
| Inception | Mar 21, 2016 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Mar 22, 2016 to Sep 17, 2026 (10.5 years).
PY vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10.5 years both funds cover.
PY vs VYM Performance
Principal Value ETF (PY) is an ETF from Principal Funds and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year PY returned +12.75% while VYM returned +16.61%. Year to date, PY is up 10.55% versus a gain of 12.29% for VYM.
Over three years, PY compounded at +14.84% per year against +17.42% for VYM; over five years the annualized figures are +9.08% and +12.12% respectively. Across the full 11-year window we track, VYM has the edge at +10.08% annualized vs +9.74%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PY has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 13.9% for VYM. 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 -45.5% for PY and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
PY charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, PY currently yields 1.85% against 2.22% for VYM.
Holdings Overlap
62.5% of PY's money is in holdings VYM also owns. 40.9% of VYM's money is in holdings PY also owns.
The two portfolios partly overlap.
66 positions in common, counted across the 101 positions we hold weights for in PY and 557 in VYM, against full books of 100 and 613.
What only one of them owns
Our book lists 462 positions for VYM that do not appear in our book for PY (56.2% of the fund), and 34 for PY that do not appear in VYM (37.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in PY | Weight in VYM | Difference |
|---|---|---|---|
| JNJJohnson & Johnson - Common | 1.62% | 2.51% | 0.89% |
| XOMExxon Mobil Corp. | 1.49% | 2.63% | 1.14% |
| JPMJpmorgan Chase | 0.25% | 3.82% | 3.57% |
| BACBank of America Corp.: Financials | 2.10% | 1.66% | 0.44% |
| UNHUnitedhealth Group Incorporated | 1.93% | 1.52% | 0.41% |
| PGProcter & Gamble Company | 1.88% | 1.37% | 0.51% |
| MRKMerck & Company Inc | 1.69% | 1.31% | 0.38% |
| KOCoca Cola Co. | 1.40% | 1.38% | 0.02% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.84% | 1.86% | 1.02% |
| CVXChevron Corp | 1.14% | 1.48% | 0.34% |
62.5% of PY is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, PY or VYM?
PY has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option, by $11 a year on a $10,000 investment.
Which performed better, PY or VYM?
Over the past year PY returned +12.75% vs +16.61% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (11 years), PY annualized +9.74% vs +10.08% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PY or VYM?
PY has been the more volatile fund at 19.2% annualized versus 13.9% for VYM. Worst drawdown: PY -45.5% vs VYM -35.7%.
Should I hold both PY and VYM?
PY and VYM have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between PY and VYM?
62.5% of PY's money is in holdings VYM also owns. 40.9% of VYM's is in holdings PY also owns. They hold 66 positions in common, counted across the 101 positions we hold weights for in PY and 557 in VYM.
Which pays a higher dividend, PY or VYM?
PY yields 1.85% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than PY?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. PY is less concentrated, with 25.8% of the fund in its ten largest positions against 26.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.