SHYG vs VYM
SHYG vs VYM
iShares 0-5 Year High Yield Corporate Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. SHYG offers more diversification with 1032 holdings.
Side-by-Side Comparison
| Metric | SHYG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.04% | |
| AUM | $7.6B | $79.0B | |
| Dividend Yield | 7.00% | 2.86% | |
| Holdings | 1,165 | 568 | |
| YTD Return | +1.73% | +13.24% | |
| 1Y Return | +4.95% | +23.76% | |
| 3Y Return (annualized) | +7.72% | +16.97% | |
| 5Y Return (annualized) | +4.84% | +12.26% | |
| Volatility (annualized) | 5.6% | 14.6% | |
| Max Drawdown | -26.3% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 15, 2013 | Nov 10, 2006 |
SHYG vs VYM Performance
iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SHYG returned +4.95% while VYM returned +23.76%. Year to date, SHYG is up 1.73% versus a gain of 13.24% for VYM.
Over three years, SHYG compounded at +7.72% per year against +16.97% for VYM; over five years the annualized figures are +4.84% and +12.26% respectively. Across the full 13-year window we track, VYM has the edge at +6.96% annualized vs +1.37%. 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 5.6% for SHYG. 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 -26.3% for SHYG 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SHYG 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, SHYG currently yields 7.00% against 2.86% for VYM.
Holdings Overlap
SHYG and VYM share 0 holdings out of 1590 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, SHYG or VYM?
SHYG 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, SHYG or VYM?
Over the past year SHYG returned +4.95% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), SHYG annualized +1.37% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, SHYG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.6% for SHYG. Worst drawdown: SHYG -26.3% vs VYM -58.8%.
Should I hold both SHYG and VYM?
SHYG and VYM have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SHYG and VYM?
SHYG and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1590 unique securities.
Which pays a higher dividend, SHYG or VYM?
SHYG yields 7.00% while VYM yields 2.86%, so SHYG currently pays the higher dividend yield.
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