ESMV 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

MetricESMVVYMWinner
Expense Ratio0.18%0.04%
AUM$8M$79.0B
Dividend Yield1.51%2.86%
Holdings160568
YTD Return+7.85%+13.24%
1Y Return+9.23%+23.76%
3Y Return (annualized)+10.26%+16.97%
5Y Return (annualized)-+12.26%
Volatility (annualized)13.1%14.6%
Max Drawdown-19.8%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionNov 2, 2021Nov 10, 2006

ESMV vs VYM Performance

iShares ESG Optimized MSCI USA Min Vol Factor ETF (ESMV) 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 ESMV returned +9.23% while VYM returned +23.76%. Year to date, ESMV is up 7.85% versus a gain of 13.24% for VYM.

Over three years, ESMV compounded at +10.26% per year against +16.97% for VYM. Across the full 5-year window we track, VYM has the edge at +6.96% annualized vs +5.97%. 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 13.1% for ESMV. 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 -19.8% for ESMV 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 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

ESMV charges 0.18% per year while VYM charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, ESMV currently yields 1.51% against 2.86% for VYM.

Holdings Overlap

26.3%overlap

ESMV and VYM share 62 holdings out of 653 unique holdings combined, representing a 26.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in ESMVWeight in VYMDifference
AVGO0.58%6.47%5.89%
JNJ0.96%2.62%1.66%
XOM0.63%2.83%2.20%
MRKProProPro
CSCOProProPro
PGProProPro
HDProProPro
KOProProPro
IBMProProPro
TXNProProPro
See all 10 holdings ESMV shares with VYM
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Frequently Asked Questions

Which is cheaper, ESMV or VYM?

ESMV has an expense ratio of 0.18% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $14 per year of difference.

Which performed better, ESMV or VYM?

Over the past year ESMV returned +9.23% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), ESMV annualized +5.97% vs +6.96% for VYM. Past performance does not guarantee future results.

Which is riskier, ESMV or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 13.1% for ESMV. Worst drawdown: ESMV -19.8% vs VYM -58.8%.

Should I hold both ESMV and VYM?

ESMV and VYM have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ESMV and VYM?

ESMV and VYM share 62 common holdings with a 26.3% weight overlap. Combined, they hold 653 unique securities.

Which pays a higher dividend, ESMV or VYM?

ESMV yields 1.51% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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