RAVI vs VYM
RAVI vs VYM
FlexShares Ultra Short Income Fund 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 | RAVI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.04% | |
| AUM | $1.5B | $79.0B | |
| Dividend Yield | 4.37% | 2.86% | |
| Holdings | 254 | 568 | |
| YTD Return | +1.78% | +15.57% | |
| 1Y Return | +3.75% | +25.99% | |
| 3Y Return (annualized) | +4.95% | +18.02% | |
| 5Y Return (annualized) | +3.54% | +12.71% | |
| Volatility (annualized) | 1.2% | 14.6% | |
| Max Drawdown | -3.8% | -58.8% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 9, 2012 | Nov 10, 2006 |
RAVI vs VYM Performance
FlexShares Ultra Short Income Fund (RAVI) is a ETF from Flexshares Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RAVI returned +3.75% while VYM returned +25.99%. Year to date, RAVI is up 1.78% versus a gain of 15.57% for VYM.
Over three years, RAVI compounded at +4.95% per year against +18.02% for VYM; over five years the annualized figures are +3.54% and +12.71% respectively. Across the full 14-year window we track, VYM has the edge at +7.07% annualized vs +1.40%. 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 1.2% for RAVI. 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 -3.8% for RAVI 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RAVI charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, RAVI currently yields 4.37% against 2.86% for VYM.
Holdings Overlap
RAVI and VYM share 0 holdings out of 753 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, RAVI or VYM?
RAVI has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, RAVI or VYM?
Over the past year RAVI returned +3.75% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), RAVI annualized +1.40% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, RAVI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.2% for RAVI. Worst drawdown: RAVI -3.8% vs VYM -58.8%.
Should I hold both RAVI and VYM?
RAVI and VYM have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RAVI and VYM?
RAVI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 753 unique securities.
Which pays a higher dividend, RAVI or VYM?
RAVI yields 4.37% while VYM yields 2.86%, so RAVI currently pays the higher dividend yield.
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