RFG 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

MetricRFGVYMWinner
Expense Ratio0.35%0.04%
AUM$345M$79.0B
Dividend Yield0.14%2.86%
Holdings98568
YTD Return+15.27%+15.20%
1Y Return+23.74%+25.56%
3Y Return (annualized)+15.28%+17.86%
5Y Return (annualized)+6.89%+12.35%
Volatility (annualized)19.6%14.6%
Max Drawdown-52.0%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
InceptionMar 1, 2006Nov 10, 2006

RFG vs VYM Performance

Invesco S&P Midcap 400 Pure Growth ETF (RFG) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RFG returned +23.74% while VYM returned +25.56%. Year to date, RFG is up 15.27% versus a gain of 15.20% for VYM.

Over three years, RFG compounded at +15.28% per year against +17.86% for VYM; over five years the annualized figures are +6.89% and +12.35% respectively. Across the full 20-year window we track, RFG has the edge at +9.35% annualized vs +7.05%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

RFG has been the more volatile fund, with annualized monthly volatility of 19.6% 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 -52.0% for RFG 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 0.80. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

RFG charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, RFG currently yields 0.14% against 2.86% for VYM.

Holdings Overlap

0.2%overlap

RFG and VYM share 6 holdings out of 651 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in RFGWeight in VYMDifference
FCFS1.49%0.03%1.46%
NVT:LN1.18%0.08%1.10%
TNL0.87%0.02%0.85%
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Frequently Asked Questions

Which is cheaper, RFG or VYM?

RFG has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.

Which performed better, RFG or VYM?

Over the past year RFG returned +23.74% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), RFG annualized +9.35% vs +7.05% for VYM. Past performance does not guarantee future results.

Which is riskier, RFG or VYM?

RFG has been the more volatile fund at 19.6% annualized versus 14.6% for VYM. Worst drawdown: RFG -52.0% vs VYM -58.8%.

Should I hold both RFG and VYM?

RFG and VYM have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between RFG and VYM?

RFG and VYM share 6 common holdings with a 0.2% weight overlap. Combined, they hold 651 unique securities.

Which pays a higher dividend, RFG or VYM?

RFG yields 0.14% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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