RAAX vs VYM
RAAX vs VYM
VanEck Real Assets ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. RAAX delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | RAAX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.04% | |
| AUM | $1.1B | $79.0B | |
| Dividend Yield | 2.07% | 2.86% | |
| Holdings | 18 | 568 | |
| YTD Return | +14.68% | +15.80% | |
| 1Y Return | +29.63% | +26.12% | |
| 3Y Return (annualized) | +19.04% | +18.25% | |
| 5Y Return (annualized) | +13.79% | +12.51% | |
| Volatility (annualized) | 14.7% | 14.6% | |
| Max Drawdown | -33.9% | -58.8% | |
| Fund Family | VanEck | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Apr 9, 2018 | Nov 10, 2006 |
RAAX vs VYM Performance
VanEck Real Assets ETF (RAAX) is a ETF from VanEck and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RAAX returned +29.63% while VYM returned +26.12%. Year to date, RAAX is up 14.68% versus a gain of 15.80% for VYM.
Over three years, RAAX compounded at +19.04% per year against +18.25% for VYM; over five years the annualized figures are +13.79% and +12.51% respectively. Across the full 8-year window we track, RAAX has the edge at +9.14% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RAAX has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 14.6% for VYM. 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 -33.9% for RAAX 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RAAX charges 0.69% per year while VYM charges 0.04%. On a $10,000 position that is $69 vs $4 annually, a gap of $65 per year that compounds over a long holding period. On income, RAAX currently yields 2.07% against 2.86% for VYM.
Holdings Overlap
RAAX and VYM share 0 holdings out of 574 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, RAAX or VYM?
RAAX has an expense ratio of 0.69% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $65 per year of difference.
Which performed better, RAAX or VYM?
Over the past year RAAX returned +29.63% vs +26.12% for VYM, so RAAX leads on 1-year performance. Over the longest common window we track (8 years), RAAX annualized +9.14% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, RAAX or VYM?
RAAX has been the more volatile fund at 14.7% annualized versus 14.6% for VYM. Worst drawdown: RAAX -33.9% vs VYM -58.8%.
Should I hold both RAAX and VYM?
RAAX and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RAAX and VYM?
RAAX and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 574 unique securities.
Which pays a higher dividend, RAAX or VYM?
RAAX yields 2.07% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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