VEA vs VYM
VEA vs VYM
Vanguard FTSE Developed Markets ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VEA has a lower expense ratio. VEA delivered stronger 1-year returns. VEA offers more diversification with 3009 holdings.
Side-by-Side Comparison
| Metric | VEA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $230.9B | $79.0B | |
| Dividend Yield | 2.57% | 2.86% | |
| Holdings | 3,918 | 568 | |
| YTD Return | +15.28% | +15.45% | |
| 1Y Return | +30.83% | +26.05% | |
| 3Y Return (annualized) | +19.54% | +17.96% | |
| 5Y Return (annualized) | +9.98% | +12.54% | |
| Volatility (annualized) | 17.8% | 14.6% | |
| Max Drawdown | -62.9% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | Nov 10, 2006 |
VEA vs VYM Performance
Vanguard FTSE Developed Markets ETF (VEA) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VEA returned +30.83% while VYM returned +26.05%. Year to date, VEA is up 15.28% versus a gain of 15.45% for VYM.
Over three years, VEA compounded at +19.54% per year against +17.96% for VYM; over five years the annualized figures are +9.98% and +12.54% respectively. Across the full 19-year window we track, VYM has the edge at +7.06% annualized vs +3.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEA has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -62.9% for VEA 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.
Fees and Cost Over Time
VEA 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, VEA currently yields 2.57% against 2.86% for VYM.
Holdings Overlap
VEA and VYM share 7 holdings out of 3560 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VEA | Weight in VYM | Difference |
|---|---|---|---|
| SLB | 1.10% | 0.34% | 0.76% |
| HBAN | 0.06% | 0.15% | 0.09% |
| KR | 0.01% | 0.18% | 0.17% |
| BAP | Pro | Pro | Pro |
| ACI | Pro | Pro | Pro |
| SIG:LN | Pro | Pro | Pro |
| AM | Pro | Pro | Pro |
See all 7 holdings VEA 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, VEA or VYM?
VEA has an expense ratio of 0.03% while VYM charges 0.04%. VEA is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VEA or VYM?
Over the past year VEA returned +30.83% vs +26.05% for VYM, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.10% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, VEA or VYM?
VEA has been the more volatile fund at 17.8% annualized versus 14.6% for VYM. Worst drawdown: VEA -62.9% vs VYM -58.8%.
Should I hold both VEA and VYM?
VEA and VYM have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEA and VYM?
VEA and VYM share 7 common holdings with a 0.5% weight overlap. Combined, they hold 3560 unique securities.
Which pays a higher dividend, VEA or VYM?
VEA yields 2.57% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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