AOA vs VYM
AOA vs VYM
iShares Core 80/20 Aggressive Allocation ETF 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 | AOA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $3.2B | $79.0B | |
| Dividend Yield | 2.05% | 2.86% | |
| Holdings | 11 | 568 | |
| YTD Return | +11.08% | +15.45% | |
| 1Y Return | +21.14% | +26.05% | |
| 3Y Return (annualized) | +16.86% | +17.96% | |
| 5Y Return (annualized) | +9.10% | +12.54% | |
| Volatility (annualized) | 12.9% | 14.6% | |
| Max Drawdown | -28.4% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Nov 4, 2008 | Nov 10, 2006 |
AOA vs VYM Performance
iShares Core 80/20 Aggressive Allocation ETF (AOA) 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 AOA returned +21.14% while VYM returned +26.05%. Year to date, AOA is up 11.08% versus a gain of 15.45% for VYM.
Over three years, AOA compounded at +16.86% per year against +17.96% for VYM; over five years the annualized figures are +9.10% and +12.54% respectively. Across the full 18-year window we track, AOA has the edge at +8.76% annualized vs +7.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 12.9% for AOA. 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 -28.4% for AOA 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
AOA 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, AOA currently yields 2.05% against 2.86% for VYM.
Holdings Overlap
AOA and VYM share 0 holdings out of 566 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, AOA or VYM?
AOA has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, AOA or VYM?
Over the past year AOA returned +21.14% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), AOA annualized +8.76% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, AOA or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.9% for AOA. Worst drawdown: AOA -28.4% vs VYM -58.8%.
Should I hold both AOA and VYM?
AOA 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 AOA and VYM?
AOA and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 566 unique securities.
Which pays a higher dividend, AOA or VYM?
AOA yields 2.05% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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