HYS vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricHYSVTIWinner
Expense Ratio0.56%0.03%
AUM$1.7B$663.5B
Dividend Yield7.31%1.07%
Holdings8263,543
YTD Return+1.33%+13.92%
1Y Return+4.76%+24.07%
3Y Return (annualized)+8.14%+20.88%
5Y Return (annualized)+5.09%+12.47%
Volatility (annualized)6.1%15.3%
Max Drawdown-26.6%-56.6%
Fund FamilyPIMCO (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionJun 16, 2011May 24, 2001

HYS vs VTI Performance

PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund (HYS) is a ETF from PIMCO (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year HYS returned +4.76% while VTI returned +24.07%. Year to date, HYS is up 1.33% versus a gain of 13.92% for VTI.

Over three years, HYS compounded at +8.14% per year against +20.88% for VTI; over five years the annualized figures are +5.09% and +12.47% respectively. Across the full 15-year window we track, VTI has the edge at +8.13% annualized vs +1.70%. 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 6.1% for HYS. 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 -26.6% for HYS 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 0.80. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HYS charges 0.56% per year while VTI charges 0.03%. On a $10,000 position that is $56 vs $3 annually, a gap of $53 per year that compounds over a long holding period. On income, HYS currently yields 7.31% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

HYS and VTI share 0 holdings out of 3440 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, HYS or VTI?

HYS has an expense ratio of 0.56% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $53 per year of difference.

Which performed better, HYS or VTI?

Over the past year HYS returned +4.76% vs +24.07% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (15 years), HYS annualized +1.70% vs +8.13% for VTI. Past performance does not guarantee future results.

Which is riskier, HYS or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 6.1% for HYS. Worst drawdown: HYS -26.6% vs VTI -56.6%.

Should I hold both HYS and VTI?

HYS and VTI have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HYS and VTI?

HYS and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3440 unique securities.

Which pays a higher dividend, HYS or VTI?

HYS yields 7.31% while VTI yields 1.07%, so HYS currently pays the higher dividend yield.

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