SHAG vs VYM
SHAG vs VYM
Wisdomtree Yield Enhanced US Short-Term Aggregate Bond Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. SHAG offers more diversification with 1024 holdings.
Side-by-Side Comparison
| Metric | SHAG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.04% | |
| AUM | $47M | $79.0B | |
| Dividend Yield | 4.31% | 2.86% | |
| Holdings | 1,122 | 568 | |
| YTD Return | -1.60% | +15.57% | |
| 1Y Return | +0.05% | +25.99% | |
| 3Y Return (annualized) | +3.79% | +18.02% | |
| 5Y Return (annualized) | +1.02% | +12.71% | |
| Volatility (annualized) | 2.6% | 14.6% | |
| Max Drawdown | -9.6% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 18, 2017 | Nov 10, 2006 |
SHAG vs VYM Performance
Wisdomtree Yield Enhanced US Short-Term Aggregate Bond Fund (SHAG) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SHAG returned +0.05% while VYM returned +25.99%. Year to date, SHAG is down 1.60% versus a gain of 15.57% for VYM.
Over three years, SHAG compounded at +3.79% per year against +18.02% for VYM; over five years the annualized figures are +1.02% and +12.71% respectively. Across the full 9-year window we track, VYM has the edge at +7.07% annualized vs +1.85%. 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 2.6% for SHAG. 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 -9.6% for SHAG 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SHAG charges 0.12% per year while VYM charges 0.04%. On a $10,000 position that is $12 vs $4 annually, a gap of $8 per year that compounds over a long holding period. On income, SHAG currently yields 4.31% against 2.86% for VYM.
Holdings Overlap
SHAG and VYM share 3 holdings out of 1579 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SHAG or VYM?
SHAG has an expense ratio of 0.12% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, SHAG or VYM?
Over the past year SHAG returned +0.05% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), SHAG annualized +1.85% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, SHAG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 2.6% for SHAG. Worst drawdown: SHAG -9.6% vs VYM -58.8%.
Should I hold both SHAG and VYM?
SHAG and VYM have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SHAG and VYM?
SHAG and VYM share 3 common holdings with a 0.3% weight overlap. Combined, they hold 1579 unique securities.
Which pays a higher dividend, SHAG or VYM?
SHAG yields 4.31% while VYM yields 2.86%, so SHAG currently pays the higher dividend yield.
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