HYI vs VTI
HYI vs VTI
Western Asset High Yield Defined Opportunity Fund Inc. vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | HYI | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.03% | |
| AUM | $146M | $663.5B | |
| Dividend Yield | 9.89% | 1.07% | |
| Holdings | 258 | 3,543 | |
| YTD Return | +0.25% | +13.39% | |
| 1Y Return | -2.25% | +23.21% | |
| 3Y Return (annualized) | +6.05% | +20.65% | |
| 5Y Return (annualized) | +1.32% | +12.18% | |
| Volatility (annualized) | 12.4% | 15.3% | |
| Max Drawdown | -48.5% | -56.6% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 27, 2010 | May 24, 2001 |
HYI vs VTI Performance
Western Asset High Yield Defined Opportunity Fund Inc. (HYI) is a ETF from Franklin Templeton Investments (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year HYI returned -2.25% while VTI returned +23.21%. Year to date, HYI is up 0.25% versus a gain of 13.39% for VTI.
Over three years, HYI compounded at +6.05% per year against +20.65% for VTI; over five years the annualized figures are +1.32% and +12.18% respectively. Across the full 16-year window we track, VTI has the edge at +8.11% annualized vs -0.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 12.4% for HYI. 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 -48.5% for HYI and -56.6% for VTI. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYI charges 0.96% per year while VTI charges 0.03%. On a $10,000 position that is $96 vs $3 annually, a gap of $93 per year that compounds over a long holding period. On income, HYI currently yields 9.89% against 1.07% for VTI.
Holdings Overlap
HYI and VTI share 1 holdings out of 2973 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in HYI | Weight in VTI | Difference |
|---|---|---|---|
| WW | 0.20% | 0.00% | 0.20% |
Frequently Asked Questions
Which is cheaper, HYI or VTI?
HYI has an expense ratio of 0.96% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, HYI or VTI?
Over the past year HYI returned -2.25% vs +23.21% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (16 years), HYI annualized -0.86% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, HYI or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 12.4% for HYI. Worst drawdown: HYI -48.5% vs VTI -56.6%.
Should I hold both HYI and VTI?
HYI and VTI have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYI and VTI?
HYI and VTI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 2973 unique securities.
Which pays a higher dividend, HYI or VTI?
HYI yields 9.89% while VTI yields 1.07%, so HYI currently pays the higher dividend yield.
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