THEQ vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricTHEQVYMWinner
Expense Ratio0.46%0.04%
AUM$37M$79.0B
Dividend Yield0.74%2.86%
Holdings347568
YTD Return+8.92%+15.57%
1Y Return+14.61%+25.99%
3Y Return (annualized)-+18.02%
5Y Return (annualized)-+12.71%
Volatility (annualized)8.2%14.6%
Max Drawdown-8.1%-58.8%
Fund FamilyT.Rowe PriceVanguard (US)
CategoryEquityEquity
InceptionMar 26, 2025Nov 10, 2006

THEQ vs VYM Performance

T. Rowe Price Hedged Equity ETF (THEQ) is a ETF from T.Rowe Price and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year THEQ returned +14.61% while VYM returned +25.99%. Year to date, THEQ is up 8.92% versus a gain of 15.57% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 8.2% for THEQ. 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 -8.1% for THEQ 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 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

THEQ charges 0.46% per year while VYM charges 0.04%. On a $10,000 position that is $46 vs $4 annually, a gap of $42 per year that compounds over a long holding period. On income, THEQ currently yields 0.74% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

THEQ and VYM share 0 holdings out of 720 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, THEQ or VYM?

THEQ has an expense ratio of 0.46% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $42 per year of difference.

Which performed better, THEQ or VYM?

Over the past year THEQ returned +14.61% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), THEQ annualized +16.45% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, THEQ or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 8.2% for THEQ. Worst drawdown: THEQ -8.1% vs VYM -58.8%.

Should I hold both THEQ and VYM?

THEQ and VYM have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between THEQ and VYM?

THEQ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 720 unique securities.

Which pays a higher dividend, THEQ or VYM?

THEQ yields 0.74% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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