HFSI vs VYM
HFSI vs VYM
Hartford Strategic Income 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 | HFSI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.04% | |
| AUM | $1.0B | $79.0B | |
| Dividend Yield | 5.25% | 2.86% | |
| Holdings | 1,019 | 568 | |
| YTD Return | -1.49% | +15.45% | |
| 1Y Return | +1.17% | +26.05% | |
| 3Y Return (annualized) | +6.81% | +17.96% | |
| 5Y Return (annualized) | - | +12.54% | |
| Volatility (annualized) | 6.7% | 14.6% | |
| Max Drawdown | -19.3% | -58.8% | |
| Fund Family | Hartford Funds | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 21, 2021 | Nov 10, 2006 |
HFSI vs VYM Performance
Hartford Strategic Income ETF (HFSI) is a ETF from Hartford Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HFSI returned +1.17% while VYM returned +26.05%. Year to date, HFSI is down 1.49% versus a gain of 15.45% for VYM.
Over three years, HFSI compounded at +6.81% per year against +17.96% for VYM. Across the full 5-year window we track, VYM has the edge at +7.06% annualized vs +1.84%. 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 6.7% for HFSI. 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 -19.3% for HFSI 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HFSI charges 0.49% per year while VYM charges 0.04%. On a $10,000 position that is $49 vs $4 annually, a gap of $45 per year that compounds over a long holding period. On income, HFSI currently yields 5.25% against 2.86% for VYM.
Holdings Overlap
HFSI and VYM share 4 holdings out of 916 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
Frequently Asked Questions
Which is cheaper, HFSI or VYM?
HFSI has an expense ratio of 0.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, HFSI or VYM?
Over the past year HFSI returned +1.17% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), HFSI annualized +1.84% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, HFSI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.7% for HFSI. Worst drawdown: HFSI -19.3% vs VYM -58.8%.
Should I hold both HFSI and VYM?
HFSI and VYM have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HFSI and VYM?
HFSI and VYM share 4 common holdings with a 0.2% weight overlap. Combined, they hold 916 unique securities.
Which pays a higher dividend, HFSI or VYM?
HFSI yields 5.25% while VYM yields 2.86%, so HFSI currently pays the higher dividend yield.
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