SHM vs VYM
SHM vs VYM
State Street SPDR Nuveen ICE Short Term Municipal Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. SHM offers more diversification with 671 holdings.
Side-by-Side Comparison
| Metric | SHM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.04% | |
| AUM | $3.5B | $79.0B | |
| Dividend Yield | 2.66% | 2.86% | |
| Holdings | 988 | 568 | |
| YTD Return | +0.50% | +13.24% | |
| 1Y Return | +1.88% | +23.76% | |
| 3Y Return (annualized) | +2.65% | +16.97% | |
| 5Y Return (annualized) | +0.76% | +12.26% | |
| Volatility (annualized) | 2.6% | 14.6% | |
| Max Drawdown | -11.6% | -58.8% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Oct 10, 2007 | Nov 10, 2006 |
SHM vs VYM Performance
State Street SPDR Nuveen ICE Short Term Municipal Bond ETF (SHM) is a ETF from State Street Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SHM returned +1.88% while VYM returned +23.76%. Year to date, SHM is up 0.50% versus a gain of 13.24% for VYM.
Over three years, SHM compounded at +2.65% per year against +16.97% for VYM; over five years the annualized figures are +0.76% and +12.26% respectively. Across the full 19-year window we track, VYM has the edge at +6.96% annualized vs +0.75%. 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 SHM. 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 -11.6% for SHM 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SHM charges 0.20% per year while VYM charges 0.04%. On a $10,000 position that is $20 vs $4 annually, a gap of $16 per year that compounds over a long holding period. On income, SHM currently yields 2.66% against 2.86% for VYM.
Holdings Overlap
SHM and VYM share 0 holdings out of 1229 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, SHM or VYM?
SHM has an expense ratio of 0.20% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, SHM or VYM?
Over the past year SHM returned +1.88% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), SHM annualized +0.75% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, SHM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 2.6% for SHM. Worst drawdown: SHM -11.6% vs VYM -58.8%.
Should I hold both SHM and VYM?
SHM and VYM have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SHM and VYM?
SHM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1229 unique securities.
Which pays a higher dividend, SHM or VYM?
SHM yields 2.66% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.