VDE vs VYM
VDE vs VYM
Vanguard Energy ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VDE delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VDE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.04% | |
| AUM | $9.0B | $79.0B | |
| Dividend Yield | 3.43% | 2.86% | |
| Holdings | 109 | 568 | |
| YTD Return | +27.78% | +15.80% | |
| 1Y Return | +40.81% | +26.12% | |
| 3Y Return (annualized) | +13.24% | +18.25% | |
| 5Y Return (annualized) | +23.18% | +12.51% | |
| Volatility (annualized) | 26.6% | 14.6% | |
| Max Drawdown | -78.5% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 23, 2004 | Nov 10, 2006 |
VDE vs VYM Performance
Vanguard Energy ETF (VDE) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VDE returned +40.81% while VYM returned +26.12%. Year to date, VDE is up 27.78% versus a gain of 15.80% for VYM.
Over three years, VDE compounded at +13.24% per year against +18.25% for VYM; over five years the annualized figures are +23.18% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +6.48%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VDE has been the more volatile fund, with annualized monthly volatility of 26.6% 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 -78.5% for VDE 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VDE charges 0.09% per year while VYM charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, VDE currently yields 3.43% against 2.86% for VYM.
Holdings Overlap
VDE and VYM share 46 holdings out of 624 unique holdings combined, representing a 9.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VDE | Weight in VYM | Difference |
|---|---|---|---|
| XOM | 21.63% | 2.83% | 18.80% |
| CVX | 13.50% | 1.53% | 11.97% |
| COP | 5.51% | 0.62% | 4.89% |
| WMB | Pro | Pro | Pro |
| VLO | Pro | Pro | Pro |
| MPC | Pro | Pro | Pro |
| SLB:CW | Pro | Pro | Pro |
| EOG | Pro | Pro | Pro |
| PSX | Pro | Pro | Pro |
| KMI | Pro | Pro | Pro |
See all 10 holdings VDE shares with VYM Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, VDE or VYM?
VDE has an expense ratio of 0.09% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VDE or VYM?
Over the past year VDE returned +40.81% vs +26.12% for VYM, so VDE leads on 1-year performance. Over the longest common window we track (20 years), VDE annualized +6.48% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, VDE or VYM?
VDE has been the more volatile fund at 26.6% annualized versus 14.6% for VYM. Worst drawdown: VDE -78.5% vs VYM -58.8%.
Should I hold both VDE and VYM?
VDE and VYM have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDE and VYM?
VDE and VYM share 46 common holdings with a 9.4% weight overlap. Combined, they hold 624 unique securities.
Which pays a higher dividend, VDE or VYM?
VDE yields 3.43% while VYM yields 2.86%, so VDE currently pays the higher dividend yield.
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