HYDW vs VYM
HYDW vs VYM
Xtrackers Low Beta High Yield Bond 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 | HYDW | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.04% | |
| AUM | $67M | $79.0B | |
| Dividend Yield | 5.73% | 2.86% | |
| Holdings | 586 | 568 | |
| YTD Return | +1.40% | +15.57% | |
| 1Y Return | +4.35% | +25.99% | |
| 3Y Return (annualized) | +6.97% | +18.02% | |
| 5Y Return (annualized) | +3.45% | +12.71% | |
| Volatility (annualized) | 6.6% | 14.6% | |
| Max Drawdown | -18.1% | -58.8% | |
| Fund Family | Xtrackers ETFs | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 11, 2018 | Nov 10, 2006 |
HYDW vs VYM Performance
Xtrackers Low Beta High Yield Bond ETF (HYDW) is a ETF from Xtrackers ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HYDW returned +4.35% while VYM returned +25.99%. Year to date, HYDW is up 1.40% versus a gain of 15.57% for VYM.
Over three years, HYDW compounded at +6.97% per year against +18.02% for VYM; over five years the annualized figures are +3.45% and +12.71% respectively. Across the full 9-year window we track, VYM has the edge at +7.07% annualized vs +2.37%. 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 6.6% for HYDW. 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 -18.1% for HYDW 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYDW 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, HYDW currently yields 5.73% against 2.86% for VYM.
Holdings Overlap
HYDW and VYM share 0 holdings out of 1074 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, HYDW or VYM?
HYDW 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, HYDW or VYM?
Over the past year HYDW returned +4.35% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), HYDW annualized +2.37% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, HYDW or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.6% for HYDW. Worst drawdown: HYDW -18.1% vs VYM -58.8%.
Should I hold both HYDW and VYM?
HYDW and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYDW and VYM?
HYDW and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1074 unique securities.
Which pays a higher dividend, HYDW or VYM?
HYDW yields 5.73% while VYM yields 2.86%, so HYDW currently pays the higher dividend yield.
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