PYZ vs VYM
Invesco Dorsey Wright Basic Materials Momentum ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. PYZ delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | PYZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.04% | |
| AUM | $74M | $79.0B | |
| Dividend Yield | 0.47% | 2.86% | |
| Holdings | 45 | 568 | |
| YTD Return | +13.82% | +16.10% | |
| 1Y Return | +29.60% | +25.99% | |
| 3Y Return (annualized) | +16.20% | +18.29% | |
| 5Y Return (annualized) | +7.72% | +12.35% | |
| Volatility (annualized) | 24.1% | 14.6% | |
| Max Drawdown | -65.7% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 12, 2006 | Nov 10, 2006 |
PYZ vs VYM Performance
Invesco Dorsey Wright Basic Materials Momentum ETF (PYZ) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PYZ returned +29.60% while VYM returned +25.99%. Year to date, PYZ is up 13.82% versus a gain of 16.10% for VYM.
Over three years, PYZ compounded at +16.20% per year against +18.29% for VYM; over five years the annualized figures are +7.72% and +12.35% respectively. Across the full 20-year window we track, PYZ has the edge at +8.76% annualized vs +7.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PYZ has been the more volatile fund, with annualized monthly volatility of 24.1% compared with 14.6% 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 -65.7% for PYZ 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PYZ charges 0.60% per year while VYM charges 0.04%. On a $10,000 position that is $60 vs $4 annually, a gap of $56 per year that compounds over a long holding period. On income, PYZ currently yields 0.47% against 2.86% for VYM.
Holdings Overlap
PYZ and VYM share 19 holdings out of 582 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PYZ or VYM?
PYZ has an expense ratio of 0.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, PYZ or VYM?
Over the past year PYZ returned +29.60% vs +25.99% for VYM, so PYZ leads on 1-year performance. Over the longest common window we track (20 years), PYZ annualized +8.76% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, PYZ or VYM?
PYZ has been the more volatile fund at 24.1% annualized versus 14.6% for VYM. Worst drawdown: PYZ -65.7% vs VYM -58.8%.
Should I hold both PYZ and VYM?
PYZ and VYM have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PYZ and VYM?
PYZ and VYM share 19 common holdings with a 1.5% weight overlap. Combined, they hold 582 unique securities.
Which pays a higher dividend, PYZ or VYM?
PYZ yields 0.47% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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