SDFI 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

MetricSDFIVYMWinner
Expense Ratio0.30%0.04%
AUM$185M$79.0B
Dividend Yield4.54%2.86%
Holdings552568
YTD Return+1.17%+13.24%
1Y Return+3.79%+23.76%
3Y Return (annualized)-+16.97%
5Y Return (annualized)-+12.26%
Volatility (annualized)1.8%14.6%
Max Drawdown-1.2%-58.8%
Fund FamilyAllianceBernstein L.P.Vanguard (US)
CategoryFixed IncomeEquity
InceptionJun 10, 2024Nov 10, 2006

SDFI vs VYM Performance

AB Short Duration Income ETF (SDFI) is a ETF from AllianceBernstein L.P. and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SDFI returned +3.79% while VYM returned +23.76%. Year to date, SDFI is up 1.17% versus a gain of 13.24% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 1.8% for SDFI. 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 -1.2% for SDFI 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

SDFI charges 0.30% per year while VYM charges 0.04%. On a $10,000 position that is $30 vs $4 annually, a gap of $26 per year that compounds over a long holding period. On income, SDFI currently yields 4.54% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

SDFI and VYM share 0 holdings out of 899 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, SDFI or VYM?

SDFI has an expense ratio of 0.30% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $26 per year of difference.

Which performed better, SDFI or VYM?

Over the past year SDFI returned +3.79% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), SDFI annualized +5.09% vs +6.96% for VYM. Past performance does not guarantee future results.

Which is riskier, SDFI or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 1.8% for SDFI. Worst drawdown: SDFI -1.2% vs VYM -58.8%.

Should I hold both SDFI and VYM?

SDFI and VYM have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SDFI and VYM?

SDFI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 899 unique securities.

Which pays a higher dividend, SDFI or VYM?

SDFI yields 4.54% while VYM yields 2.86%, so SDFI currently pays the higher dividend yield.

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