VFIAX vs VYM

Quick Verdict

VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: TiedHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricVFIAXVYMWinner
Expense Ratio0.04%0.04%
AUM$690.3B$79.0B
Dividend Yield1.28%2.86%
Holdings506568
YTD Return+9.21%+13.24%
1Y Return+18.13%+23.76%
3Y Return (annualized)+17.85%+16.97%
5Y Return (annualized)+11.12%+12.26%
Volatility (annualized)15.8%14.6%
Max Drawdown-25.4%-58.8%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
InceptionNov 13, 2000Nov 10, 2006

VFIAX vs VYM Performance

Vanguard 500 Index Fund Admiral Class (VFIAX) is a mutual fund from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VFIAX returned +18.13% while VYM returned +23.76%. Year to date, VFIAX is up 9.21% versus a gain of 13.24% for VYM.

Over three years, VFIAX compounded at +17.85% per year against +16.97% for VYM; over five years the annualized figures are +11.12% and +12.26% respectively. Across the full 5-year window we track, VFIAX has the edge at +11.12% annualized vs +6.96%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VFIAX has been the more volatile fund, with annualized monthly volatility of 15.8% 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 -25.4% for VFIAX 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 0.82. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VFIAX charges 0.04% per year while VYM charges 0.04%. On a $10,000 position that is $4 vs $4 annually. On income, VFIAX currently yields 1.28% against 2.86% for VYM.

Holdings Overlap

35.1%overlap

VFIAX and VYM share 227 holdings out of 834 unique holdings combined, representing a 35.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VFIAXWeight in VYMDifference
AVGO2.62%6.47%3.85%
JPM1.34%3.36%2.02%
XOM1.27%2.83%1.56%
JNJProProPro
WMTProProPro
ABBVProProPro
PGProProPro
HDProProPro
CVXProProPro
CATProProPro
See all 10 holdings VFIAX shares with VYM
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Frequently Asked Questions

Which is cheaper, VFIAX or VYM?

VFIAX has an expense ratio of 0.04% while VYM charges 0.04%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, VFIAX or VYM?

Over the past year VFIAX returned +18.13% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), VFIAX annualized +11.12% vs +6.96% for VYM. Past performance does not guarantee future results.

Which is riskier, VFIAX or VYM?

VFIAX has been the more volatile fund at 15.8% annualized versus 14.6% for VYM. Worst drawdown: VFIAX -25.4% vs VYM -58.8%.

Should I hold both VFIAX and VYM?

VFIAX and VYM have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VFIAX and VYM?

VFIAX and VYM share 227 common holdings with a 35.1% weight overlap. Combined, they hold 834 unique securities.

Which pays a higher dividend, VFIAX or VYM?

VFIAX yields 1.28% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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