AOR vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricAORVYMWinner
Expense Ratio0.15%0.04%
AUM$3.6B$79.0B
Dividend Yield2.47%2.86%
Holdings9568
YTD Return+8.73%+15.80%
1Y Return+16.29%+26.12%
3Y Return (annualized)+14.02%+18.25%
5Y Return (annualized)+7.02%+12.51%
Volatility (annualized)10.1%14.6%
Max Drawdown-25.0%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryAllocation/BalancedEquity
InceptionNov 4, 2008Nov 10, 2006

AOR vs VYM Performance

iShares Core 60/40 Balanced Allocation ETF (AOR) 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 AOR returned +16.29% while VYM returned +26.12%. Year to date, AOR is up 8.73% versus a gain of 15.80% for VYM.

Over three years, AOR compounded at +14.02% per year against +18.25% for VYM; over five years the annualized figures are +7.02% and +12.51% respectively. Across the full 18-year window we track, VYM has the edge at +7.07% annualized vs +7.03%. 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 10.1% for AOR. 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 -25.0% for AOR 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 0.87. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

AOR 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, AOR currently yields 2.47% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

AOR 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, AOR or VYM?

AOR 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, AOR or VYM?

Over the past year AOR returned +16.29% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), AOR annualized +7.03% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, AOR or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 10.1% for AOR. Worst drawdown: AOR -25.0% vs VYM -58.8%.

Should I hold both AOR and VYM?

AOR and VYM have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between AOR and VYM?

AOR and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 566 unique securities.

Which pays a higher dividend, AOR or VYM?

AOR yields 2.47% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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