State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) 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 SPSM returned +36.21% while VYM returned +26.05%. Year to date, SPSM is up 23.31% versus a gain of 15.45% for VYM.

Over three years, SPSM compounded at +14.40% per year against +17.96% for VYM; over five years the annualized figures are +7.86% and +12.54% respectively. Across the full 13-year window we track, SPSM has the edge at +9.16% annualized vs +7.06%. Past performance does not guarantee future results.

SPSM has been the more volatile fund, with annualized monthly volatility of 19.5% compared with 14.6% for VYM. 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 -44.4% for SPSM 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 0.85. They usually move together, but the gap leaves some room for diversification.

SPSM charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, SPSM currently yields 1.36% against 2.86% for VYM.