ACWI vs VYM
ACWI vs VYM
iShares MSCI ACWI ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. ACWI offers more diversification with 1314 holdings.
Side-by-Side Comparison
| Metric | ACWI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.04% | |
| AUM | $32.1B | $79.0B | |
| Dividend Yield | 1.43% | 2.86% | |
| Holdings | 2,280 | 568 | |
| YTD Return | +13.46% | +15.57% | |
| 1Y Return | +25.29% | +25.99% | |
| 3Y Return (annualized) | +19.90% | +18.02% | |
| 5Y Return (annualized) | +11.11% | +12.71% | |
| Volatility (annualized) | 16.6% | 14.6% | |
| Max Drawdown | -56.3% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 26, 2008 | Nov 10, 2006 |
ACWI vs VYM Performance
iShares MSCI ACWI ETF (ACWI) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ACWI returned +25.29% while VYM returned +25.99%. Year to date, ACWI is up 13.46% versus a gain of 15.57% for VYM.
Over three years, ACWI compounded at +19.90% per year against +18.02% for VYM; over five years the annualized figures are +11.11% and +12.71% respectively. Across the full 18-year window we track, VYM has the edge at +7.07% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ACWI has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -56.3% for ACWI 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
ACWI charges 0.32% per year while VYM charges 0.04%. On a $10,000 position that is $32 vs $4 annually, a gap of $28 per year that compounds over a long holding period. On income, ACWI currently yields 1.43% against 2.86% for VYM.
Holdings Overlap
ACWI and VYM share 191 holdings out of 1681 unique holdings combined, representing a 20.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in ACWI | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 1.64% | 6.47% | 4.83% |
| JPM | 0.88% | 3.36% | 2.48% |
| XOM | 0.55% | 2.83% | 2.28% |
| JNJ | Pro | Pro | Pro |
| WMT | Pro | Pro | Pro |
| ABBV | Pro | Pro | Pro |
| PG | Pro | Pro | Pro |
| HD | Pro | Pro | Pro |
| CAT | Pro | Pro | Pro |
| CVX | Pro | Pro | Pro |
See all 10 holdings ACWI shares with VYM Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, ACWI or VYM?
ACWI has an expense ratio of 0.32% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $28 per year of difference.
Which performed better, ACWI or VYM?
Over the past year ACWI returned +25.29% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), ACWI annualized +7.06% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, ACWI or VYM?
ACWI has been the more volatile fund at 16.6% annualized versus 14.6% for VYM. Worst drawdown: ACWI -56.3% vs VYM -58.8%.
Should I hold both ACWI and VYM?
ACWI and VYM have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between ACWI and VYM?
ACWI and VYM share 191 common holdings with a 20.3% weight overlap. Combined, they hold 1681 unique securities.
Which pays a higher dividend, ACWI or VYM?
ACWI yields 1.43% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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