USTB vs VYM
USTB vs VYM
VictoryShares Short-Term Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. USTB offers more diversification with 742 holdings.
Side-by-Side Comparison
| Metric | USTB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.04% | |
| AUM | $2.3B | $79.0B | |
| Dividend Yield | 4.58% | 2.86% | |
| Holdings | 922 | 568 | |
| YTD Return | +1.80% | +15.57% | |
| 1Y Return | +3.93% | +25.99% | |
| 3Y Return (annualized) | +5.86% | +18.02% | |
| 5Y Return (annualized) | +3.56% | +12.71% | |
| Volatility (annualized) | 2.4% | 14.6% | |
| Max Drawdown | -5.5% | -58.8% | |
| Fund Family | Victory Capital Management Inc. | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 24, 2017 | Nov 10, 2006 |
USTB vs VYM Performance
VictoryShares Short-Term Bond ETF (USTB) is a ETF from Victory Capital Management Inc. and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year USTB returned +3.93% while VYM returned +25.99%. Year to date, USTB is up 1.80% versus a gain of 15.57% for VYM.
Over three years, USTB compounded at +5.86% per year against +18.02% for VYM; over five years the annualized figures are +3.56% and +12.71% respectively. Across the full 9-year window we track, VYM has the edge at +7.07% annualized vs +2.51%. 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 2.4% for USTB. 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 -5.5% for USTB 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
USTB charges 0.34% per year while VYM charges 0.04%. On a $10,000 position that is $34 vs $4 annually, a gap of $30 per year that compounds over a long holding period. On income, USTB currently yields 4.58% against 2.86% for VYM.
Holdings Overlap
USTB and VYM share 0 holdings out of 1300 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, USTB or VYM?
USTB has an expense ratio of 0.34% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, USTB or VYM?
Over the past year USTB returned +3.93% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), USTB annualized +2.51% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, USTB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 2.4% for USTB. Worst drawdown: USTB -5.5% vs VYM -58.8%.
Should I hold both USTB and VYM?
USTB and VYM have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between USTB and VYM?
USTB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1300 unique securities.
Which pays a higher dividend, USTB or VYM?
USTB yields 4.58% while VYM yields 2.86%, so USTB currently pays the higher dividend yield.
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