KORP vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricKORPVYMWinner
Expense Ratio0.29%0.04%
AUM$878M$79.0B
Dividend Yield5.08%2.86%
Holdings358568
YTD Return-0.41%+13.24%
1Y Return+2.96%+23.76%
3Y Return (annualized)+5.43%+16.97%
5Y Return (annualized)+1.27%+12.26%
Volatility (annualized)5.6%14.6%
Max Drawdown-14.9%-58.8%
Fund FamilyAmerican Century InvestmentsVanguard (US)
CategoryFixed IncomeEquity
InceptionJan 11, 2018Nov 10, 2006

KORP vs VYM Performance

American Century Diversified Corporate Bond ETF (KORP) is a ETF from American Century Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KORP returned +2.96% while VYM returned +23.76%. Year to date, KORP is down 0.41% versus a gain of 13.24% for VYM.

Over three years, KORP compounded at +5.43% per year against +16.97% for VYM; over five years the annualized figures are +1.27% and +12.26% respectively. Across the full 9-year window we track, VYM has the edge at +6.96% annualized vs +1.49%. 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 5.6% for KORP. 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 -14.9% for KORP 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

KORP charges 0.29% per year while VYM charges 0.04%. On a $10,000 position that is $29 vs $4 annually, a gap of $25 per year that compounds over a long holding period. On income, KORP currently yields 5.08% against 2.86% for VYM.

Holdings Overlap

0.7%overlap

KORP and VYM share 2 holdings out of 725 unique holdings combined, representing a 0.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in KORPWeight in VYMDifference
GS0.33%1.05%0.72%
C0.39%0.81%0.42%

Frequently Asked Questions

Which is cheaper, KORP or VYM?

KORP has an expense ratio of 0.29% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $25 per year of difference.

Which performed better, KORP or VYM?

Over the past year KORP returned +2.96% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), KORP annualized +1.49% vs +6.96% for VYM. Past performance does not guarantee future results.

Which is riskier, KORP or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 5.6% for KORP. Worst drawdown: KORP -14.9% vs VYM -58.8%.

Should I hold both KORP and VYM?

KORP and VYM have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between KORP and VYM?

KORP and VYM share 2 common holdings with a 0.7% weight overlap. Combined, they hold 725 unique securities.

Which pays a higher dividend, KORP or VYM?

KORP yields 5.08% while VYM yields 2.86%, so KORP currently pays the higher dividend yield.

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