HIX vs VYM
HIX vs VYM
Western Asset High Income Fund II Inc. 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 | HIX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 3.82% | 0.04% | |
| AUM | $363M | $79.0B | |
| Dividend Yield | 14.27% | 2.86% | |
| Holdings | 437 | 568 | |
| YTD Return | +2.33% | +15.45% | |
| 1Y Return | +6.90% | +26.05% | |
| 3Y Return (annualized) | +6.00% | +17.96% | |
| 5Y Return (annualized) | -0.71% | +12.54% | |
| Volatility (annualized) | 18.7% | 14.6% | |
| Max Drawdown | -75.2% | -58.8% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 22, 1998 | Nov 10, 2006 |
HIX vs VYM Performance
Western Asset High Income Fund II Inc. (HIX) is a ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HIX returned +6.90% while VYM returned +26.05%. Year to date, HIX is up 2.33% versus a gain of 15.45% for VYM.
Over three years, HIX compounded at +6.00% per year against +17.96% for VYM; over five years the annualized figures are -0.71% and +12.54% respectively. Across the full 20-year window we track, VYM has the edge at +7.06% annualized vs -2.37%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HIX has been the more volatile fund, with annualized monthly volatility of 18.7% compared with 14.6% for VYM. 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 -75.2% for HIX 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HIX charges 3.82% per year while VYM charges 0.04%. On a $10,000 position that is $382 vs $4 annually, a gap of $378 per year that compounds over a long holding period. On income, HIX currently yields 14.27% against 2.86% for VYM.
Holdings Overlap
HIX and VYM share 0 holdings out of 846 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, HIX or VYM?
HIX has an expense ratio of 3.82% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $378 per year of difference.
Which performed better, HIX or VYM?
Over the past year HIX returned +6.90% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), HIX annualized -2.37% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, HIX or VYM?
HIX has been the more volatile fund at 18.7% annualized versus 14.6% for VYM. Worst drawdown: HIX -75.2% vs VYM -58.8%.
Should I hold both HIX and VYM?
HIX and VYM have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HIX and VYM?
HIX and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 846 unique securities.
Which pays a higher dividend, HIX or VYM?
HIX yields 14.27% while VYM yields 2.86%, so HIX currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.