RCS vs VYM
RCS vs VYM
PIMCO Strategic Income Fund Inc. 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 558 holdings.
Side-by-Side Comparison
| Metric | RCS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.04% | |
| AUM | $217M | $79.0B | |
| Dividend Yield | 10.43% | 2.86% | |
| Holdings | 503 | 568 | |
| YTD Return | -4.62% | +15.80% | |
| 1Y Return | -20.48% | +26.12% | |
| 3Y Return (annualized) | +7.03% | +18.25% | |
| 5Y Return (annualized) | +0.84% | +12.51% | |
| Volatility (annualized) | 17.5% | 14.6% | |
| Max Drawdown | -60.9% | -58.8% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 24, 1994 | Nov 10, 2006 |
RCS vs VYM Performance
PIMCO Strategic Income Fund Inc. (RCS) is a ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RCS returned -20.48% while VYM returned +26.12%. Year to date, RCS is down 4.62% versus a gain of 15.80% for VYM.
Over three years, RCS compounded at +7.03% per year against +18.25% for VYM; over five years the annualized figures are +0.84% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs -0.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RCS has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -60.9% for RCS 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RCS charges 0.98% per year while VYM charges 0.04%. On a $10,000 position that is $98 vs $4 annually, a gap of $94 per year that compounds over a long holding period. On income, RCS currently yields 10.43% against 2.86% for VYM.
Holdings Overlap
RCS and VYM share 0 holdings out of 577 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, RCS or VYM?
RCS has an expense ratio of 0.98% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $94 per year of difference.
Which performed better, RCS or VYM?
Over the past year RCS returned -20.48% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), RCS annualized -0.45% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, RCS or VYM?
RCS has been the more volatile fund at 17.5% annualized versus 14.6% for VYM. Worst drawdown: RCS -60.9% vs VYM -58.8%.
Should I hold both RCS and VYM?
RCS and VYM have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RCS and VYM?
RCS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 577 unique securities.
Which pays a higher dividend, RCS or VYM?
RCS yields 10.43% while VYM yields 2.86%, so RCS currently pays the higher dividend yield.
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