VFH vs VYM
VFH vs VYM
Vanguard Financials ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VFH | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.04% | |
| AUM | $12.7B | $79.0B | |
| Dividend Yield | 1.77% | 2.86% | |
| Holdings | 415 | 568 | |
| YTD Return | +7.04% | +15.45% | |
| 1Y Return | +14.47% | +26.05% | |
| 3Y Return (annualized) | +20.46% | +17.96% | |
| 5Y Return (annualized) | +11.46% | +12.54% | |
| Volatility (annualized) | 20.3% | 14.6% | |
| Max Drawdown | -79.9% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Nov 10, 2006 |
VFH vs VYM Performance
Vanguard Financials ETF (VFH) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VFH returned +14.47% while VYM returned +26.05%. Year to date, VFH is up 7.04% versus a gain of 15.45% for VYM.
Over three years, VFH compounded at +20.46% per year against +17.96% for VYM; over five years the annualized figures are +11.46% and +12.54% respectively. Across the full 20-year window we track, VYM has the edge at +7.06% annualized vs +5.28%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFH has been the more volatile fund, with annualized monthly volatility of 20.3% 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 -79.9% for VFH 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VFH 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, VFH currently yields 1.77% against 2.86% for VYM.
Holdings Overlap
VFH and VYM share 159 holdings out of 811 unique holdings combined, representing a 19.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VFH | Weight in VYM | Difference |
|---|---|---|---|
| JPM | 9.19% | 3.36% | 5.83% |
| BAC | 4.13% | 1.39% | 2.74% |
| WFC | 2.96% | 1.12% | 1.84% |
| GS | Pro | Pro | Pro |
| MS | Pro | Pro | Pro |
| C | Pro | Pro | Pro |
| BLK | Pro | Pro | Pro |
| CB | Pro | Pro | Pro |
| PGR | Pro | Pro | Pro |
| CME | Pro | Pro | Pro |
See all 10 holdings VFH 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, VFH or VYM?
VFH 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, VFH or VYM?
Over the past year VFH returned +14.47% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VFH annualized +5.28% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, VFH or VYM?
VFH has been the more volatile fund at 20.3% annualized versus 14.6% for VYM. Worst drawdown: VFH -79.9% vs VYM -58.8%.
Should I hold both VFH and VYM?
VFH and VYM have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VFH and VYM?
VFH and VYM share 159 common holdings with a 19.0% weight overlap. Combined, they hold 811 unique securities.
Which pays a higher dividend, VFH or VYM?
VFH yields 1.77% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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