CLOA vs VYM
CLOA vs VYM
iShares AAA CLO Active 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 | CLOA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.04% | |
| AUM | $2.2B | $79.0B | |
| Dividend Yield | 4.95% | 2.86% | |
| Holdings | 433 | 568 | |
| YTD Return | +2.75% | +13.24% | |
| 1Y Return | +5.19% | +23.76% | |
| 3Y Return (annualized) | +7.75% | +16.97% | |
| 5Y Return (annualized) | - | +12.26% | |
| Volatility (annualized) | 1.2% | 14.6% | |
| Max Drawdown | -1.3% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 10, 2023 | Nov 10, 2006 |
CLOA vs VYM Performance
iShares AAA CLO Active ETF (CLOA) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CLOA returned +5.19% while VYM returned +23.76%. Year to date, CLOA is up 2.75% versus a gain of 13.24% for VYM.
Over three years, CLOA compounded at +7.75% per year against +16.97% for VYM. Across the full 4-year window we track, CLOA has the edge at +7.93% annualized vs +6.96%. 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 1.2% for CLOA. 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 -1.3% for CLOA 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CLOA charges 0.20% per year while VYM charges 0.04%. On a $10,000 position that is $20 vs $4 annually, a gap of $16 per year that compounds over a long holding period. On income, CLOA currently yields 4.95% against 2.86% for VYM.
Holdings Overlap
CLOA and VYM share 0 holdings out of 598 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, CLOA or VYM?
CLOA has an expense ratio of 0.20% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, CLOA or VYM?
Over the past year CLOA returned +5.19% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), CLOA annualized +7.93% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, CLOA or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.2% for CLOA. Worst drawdown: CLOA -1.3% vs VYM -58.8%.
Should I hold both CLOA and VYM?
CLOA and VYM have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CLOA and VYM?
CLOA and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 598 unique securities.
Which pays a higher dividend, CLOA or VYM?
CLOA yields 4.95% while VYM yields 2.86%, so CLOA currently pays the higher dividend yield.
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