HAPI 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

MetricHAPIVYMWinner
Expense Ratio0.35%0.04%
AUM$484M$79.0B
Dividend Yield0.80%2.86%
Holdings155568
YTD Return+9.68%+13.24%
1Y Return+17.44%+23.76%
3Y Return (annualized)+19.72%+16.97%
5Y Return (annualized)-+12.26%
Volatility (annualized)12.8%14.6%
Max Drawdown-19.5%-58.8%
Fund FamilyHarbor FundsVanguard (US)
CategoryEquityEquity
InceptionOct 12, 2022Nov 10, 2006

HAPI vs VYM Performance

Harbor Human Capital Factor US Large Cap ETF (HAPI) is a ETF from Harbor Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HAPI returned +17.44% while VYM returned +23.76%. Year to date, HAPI is up 9.68% versus a gain of 13.24% for VYM.

Over three years, HAPI compounded at +19.72% per year against +16.97% for VYM. Across the full 4-year window we track, HAPI has the edge at +23.85% 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 12.8% for HAPI. 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 -19.5% for HAPI 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 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HAPI charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, HAPI currently yields 0.80% against 2.86% for VYM.

Holdings Overlap

25.0%overlap

HAPI and VYM share 51 holdings out of 663 unique holdings combined, representing a 25.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HAPIWeight in VYMDifference
JPM3.30%3.36%0.06%
CSCO3.27%1.39%1.88%
JNJ1.50%2.62%1.12%
CVXProProPro
PGProProPro
ABBVProProPro
CATProProPro
PMProProPro
MRKProProPro
VZProProPro
See all 10 holdings HAPI shares with VYM
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Frequently Asked Questions

Which is cheaper, HAPI or VYM?

HAPI has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.

Which performed better, HAPI or VYM?

Over the past year HAPI returned +17.44% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), HAPI annualized +23.85% vs +6.96% for VYM. Past performance does not guarantee future results.

Which is riskier, HAPI or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 12.8% for HAPI. Worst drawdown: HAPI -19.5% vs VYM -58.8%.

Should I hold both HAPI and VYM?

HAPI and VYM have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HAPI and VYM?

HAPI and VYM share 51 common holdings with a 25.0% weight overlap. Combined, they hold 663 unique securities.

Which pays a higher dividend, HAPI or VYM?

HAPI yields 0.80% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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