SDHY vs VYM
SDHY vs VYM
PGIM Short Duration High Yield Opportunities 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 | SDHY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.90% | 0.04% | |
| AUM | $441M | $79.0B | |
| Dividend Yield | 7.47% | 2.86% | |
| Holdings | 572 | 568 | |
| YTD Return | +1.69% | +15.20% | |
| 1Y Return | +4.20% | +25.56% | |
| 3Y Return (annualized) | +10.17% | +17.86% | |
| 5Y Return (annualized) | +4.45% | +12.35% | |
| Volatility (annualized) | 10.1% | 14.6% | |
| Max Drawdown | -23.1% | -58.8% | |
| Fund Family | PGIM Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 25, 2020 | Nov 10, 2006 |
SDHY vs VYM Performance
PGIM Short Duration High Yield Opportunities Fund (SDHY) is a ETF from PGIM Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SDHY returned +4.20% while VYM returned +25.56%. Year to date, SDHY is up 1.69% versus a gain of 15.20% for VYM.
Over three years, SDHY compounded at +10.17% per year against +17.86% for VYM; over five years the annualized figures are +4.45% and +12.35% respectively. Across the full 6-year window we track, VYM has the edge at +7.05% annualized vs +4.00%. 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 10.1% for SDHY. 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 -23.1% for SDHY 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SDHY charges 1.90% per year while VYM charges 0.04%. On a $10,000 position that is $190 vs $4 annually, a gap of $186 per year that compounds over a long holding period. On income, SDHY currently yields 7.47% against 2.86% for VYM.
Holdings Overlap
SDHY and VYM share 1 holdings out of 1013 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SDHY | Weight in VYM | Difference |
|---|---|---|---|
| HP | 0.64% | 0.01% | 0.63% |
Frequently Asked Questions
Which is cheaper, SDHY or VYM?
SDHY has an expense ratio of 1.90% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $186 per year of difference.
Which performed better, SDHY or VYM?
Over the past year SDHY returned +4.20% vs +25.56% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), SDHY annualized +4.00% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, SDHY or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 10.1% for SDHY. Worst drawdown: SDHY -23.1% vs VYM -58.8%.
Should I hold both SDHY and VYM?
SDHY and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SDHY and VYM?
SDHY and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1013 unique securities.
Which pays a higher dividend, SDHY or VYM?
SDHY yields 7.47% while VYM yields 2.86%, so SDHY currently pays the higher dividend yield.
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