ACP vs VYM
ACP vs VYM
Abrdn Income Credit Strategies Fund 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 | ACP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.86% | 0.04% | |
| AUM | $805M | $79.0B | |
| Dividend Yield | 16.88% | 2.86% | |
| Holdings | 214 | 568 | |
| YTD Return | +3.47% | +15.57% | |
| 1Y Return | +0.66% | +25.99% | |
| 3Y Return (annualized) | +7.19% | +18.02% | |
| 5Y Return (annualized) | -0.02% | +12.71% | |
| Volatility (annualized) | 19.6% | 14.6% | |
| Max Drawdown | -70.9% | -58.8% | |
| Fund Family | Aberdeen | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 27, 2011 | Nov 10, 2006 |
ACP vs VYM Performance
Abrdn Income Credit Strategies Fund (ACP) is a ETF from Aberdeen and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ACP returned +0.66% while VYM returned +25.99%. Year to date, ACP is up 3.47% versus a gain of 15.57% for VYM.
Over three years, ACP compounded at +7.19% per year against +18.02% for VYM; over five years the annualized figures are -0.02% and +12.71% respectively. Across the full 16-year window we track, VYM has the edge at +7.07% annualized vs -3.29%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ACP has been the more volatile fund, with annualized monthly volatility of 19.6% 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 -70.9% for ACP 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ACP charges 2.86% per year while VYM charges 0.04%. On a $10,000 position that is $286 vs $4 annually, a gap of $282 per year that compounds over a long holding period. On income, ACP currently yields 16.88% against 2.86% for VYM.
Holdings Overlap
ACP and VYM share 0 holdings out of 639 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, ACP or VYM?
ACP has an expense ratio of 2.86% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $282 per year of difference.
Which performed better, ACP or VYM?
Over the past year ACP returned +0.66% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (16 years), ACP annualized -3.29% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, ACP or VYM?
ACP has been the more volatile fund at 19.6% annualized versus 14.6% for VYM. Worst drawdown: ACP -70.9% vs VYM -58.8%.
Should I hold both ACP and VYM?
ACP and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ACP and VYM?
ACP and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 639 unique securities.
Which pays a higher dividend, ACP or VYM?
ACP yields 16.88% while VYM yields 2.86%, so ACP currently pays the higher dividend yield.
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