MAGG vs VYM
MAGG vs VYM
Madison Aggregate 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 | MAGG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.04% | |
| AUM | $66M | $79.0B | |
| Dividend Yield | 4.75% | 2.86% | |
| Holdings | 219 | 568 | |
| YTD Return | -0.57% | +13.24% | |
| 1Y Return | +2.99% | +23.76% | |
| 3Y Return (annualized) | +4.38% | +16.97% | |
| 5Y Return (annualized) | - | +12.26% | |
| Volatility (annualized) | 5.3% | 14.6% | |
| Max Drawdown | -4.6% | -58.8% | |
| Fund Family | Madison Funds | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 28, 2023 | Nov 10, 2006 |
MAGG vs VYM Performance
Madison Aggregate Bond ETF (MAGG) is a ETF from Madison Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MAGG returned +2.99% while VYM returned +23.76%. Year to date, MAGG is down 0.57% versus a gain of 13.24% for VYM.
Over three years, MAGG compounded at +4.38% per year against +16.97% for VYM. Across the full 3-year window we track, VYM has the edge at +6.96% annualized vs +4.38%. 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 5.3% for MAGG. 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 -4.6% for MAGG 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MAGG charges 0.36% per year while VYM charges 0.04%. On a $10,000 position that is $36 vs $4 annually, a gap of $32 per year that compounds over a long holding period. On income, MAGG currently yields 4.75% against 2.86% for VYM.
Holdings Overlap
MAGG and VYM share 0 holdings out of 703 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, MAGG or VYM?
MAGG has an expense ratio of 0.36% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, MAGG or VYM?
Over the past year MAGG returned +2.99% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), MAGG annualized +4.38% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, MAGG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.3% for MAGG. Worst drawdown: MAGG -4.6% vs VYM -58.8%.
Should I hold both MAGG and VYM?
MAGG and VYM have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MAGG and VYM?
MAGG and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 703 unique securities.
Which pays a higher dividend, MAGG or VYM?
MAGG yields 4.75% while VYM yields 2.86%, so MAGG currently pays the higher dividend yield.
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