MSTI vs VYM
MSTI vs VYM
Madison Short-Term Strategic Income 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 | MSTI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.04% | |
| AUM | $49M | $79.0B | |
| Dividend Yield | 5.33% | 2.86% | |
| Holdings | 99 | 568 | |
| YTD Return | +0.60% | +13.24% | |
| 1Y Return | +3.20% | +23.76% | |
| 3Y Return (annualized) | +5.78% | +16.97% | |
| 5Y Return (annualized) | - | +12.26% | |
| Volatility (annualized) | 2.5% | 14.6% | |
| Max Drawdown | -1.5% | -58.8% | |
| Fund Family | Madison Funds | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 5, 2023 | Nov 10, 2006 |
MSTI vs VYM Performance
Madison Short-Term Strategic Income ETF (MSTI) is a ETF from Madison Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MSTI returned +3.20% while VYM returned +23.76%. Year to date, MSTI is up 0.60% versus a gain of 13.24% for VYM.
Over three years, MSTI compounded at +5.78% per year against +16.97% for VYM. Across the full 3-year window we track, VYM has the edge at +6.96% annualized vs +5.78%. 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 2.5% for MSTI. 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 -1.5% for MSTI 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSTI 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, MSTI currently yields 5.33% against 2.86% for VYM.
Holdings Overlap
MSTI and VYM share 0 holdings out of 614 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, MSTI or VYM?
MSTI 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, MSTI or VYM?
Over the past year MSTI returned +3.20% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), MSTI annualized +5.78% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, MSTI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 2.5% for MSTI. Worst drawdown: MSTI -1.5% vs VYM -58.8%.
Should I hold both MSTI and VYM?
MSTI and VYM have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSTI and VYM?
MSTI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 614 unique securities.
Which pays a higher dividend, MSTI or VYM?
MSTI yields 5.33% while VYM yields 2.86%, so MSTI currently pays the higher dividend yield.
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