SDSI vs VYM
SDSI vs VYM
American Century Short Duration Strategic Income ETF 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 | SDSI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.04% | |
| AUM | $245M | $79.0B | |
| Dividend Yield | 4.78% | 2.86% | |
| Holdings | 400 | 568 | |
| YTD Return | +1.64% | +13.82% | |
| 1Y Return | +4.08% | +24.08% | |
| 3Y Return (annualized) | +5.70% | +17.72% | |
| 5Y Return (annualized) | - | +12.13% | |
| Volatility (annualized) | 1.9% | 14.6% | |
| Max Drawdown | -1.3% | -58.8% | |
| Fund Family | American Century Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 11, 2022 | Nov 10, 2006 |
SDSI vs VYM Performance
American Century Short Duration Strategic Income ETF (SDSI) is a ETF from American Century Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SDSI returned +4.08% while VYM returned +24.08%. Year to date, SDSI is up 1.64% versus a gain of 13.82% for VYM.
Over three years, SDSI compounded at +5.70% per year against +17.72% for VYM. Across the full 4-year window we track, VYM has the edge at +6.98% annualized vs +5.64%. 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 1.9% for SDSI. 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 -1.3% for SDSI 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SDSI charges 0.32% per year while VYM charges 0.04%. On a $10,000 position that is $32 vs $4 annually, a gap of $28 per year that compounds over a long holding period. On income, SDSI currently yields 4.78% against 2.86% for VYM.
Holdings Overlap
SDSI and VYM share 1 holdings out of 699 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SDSI | Weight in VYM | Difference |
|---|---|---|---|
| C | 0.33% | 0.81% | 0.48% |
Frequently Asked Questions
Which is cheaper, SDSI or VYM?
SDSI has an expense ratio of 0.32% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $28 per year of difference.
Which performed better, SDSI or VYM?
Over the past year SDSI returned +4.08% vs +24.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), SDSI annualized +5.64% vs +6.98% for VYM. Past performance does not guarantee future results.
Which is riskier, SDSI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.9% for SDSI. Worst drawdown: SDSI -1.3% vs VYM -58.8%.
Should I hold both SDSI and VYM?
SDSI and VYM have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SDSI and VYM?
SDSI and VYM share 1 common holdings with a 0.3% weight overlap. Combined, they hold 699 unique securities.
Which pays a higher dividend, SDSI or VYM?
SDSI yields 4.78% while VYM yields 2.86%, so SDSI currently pays the higher dividend yield.
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