VGI vs VYM
VGI vs VYM
Virtus Global Multi-Sector Income Fund 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 | VGI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.74% | 0.04% | |
| AUM | $88M | $79.0B | |
| Dividend Yield | 11.98% | 2.86% | |
| Holdings | 646 | 568 | |
| YTD Return | +1.47% | +15.80% | |
| 1Y Return | +5.12% | +26.12% | |
| 3Y Return (annualized) | +11.60% | +18.25% | |
| 5Y Return (annualized) | +2.10% | +12.51% | |
| Volatility (annualized) | 14.2% | 14.6% | |
| Max Drawdown | -63.3% | -58.8% | |
| Fund Family | Virtus Investment Partners | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 23, 2012 | Nov 10, 2006 |
VGI vs VYM Performance
Virtus Global Multi-Sector Income Fund (VGI) is a ETF from Virtus Investment Partners and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VGI returned +5.12% while VYM returned +26.12%. Year to date, VGI is up 1.47% versus a gain of 15.80% for VYM.
Over three years, VGI compounded at +11.60% per year against +18.25% for VYM; over five years the annualized figures are +2.10% and +12.51% respectively. Across the full 15-year window we track, VYM has the edge at +7.07% annualized vs -2.38%. 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 14.2% for VGI. 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 -63.3% for VGI 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGI charges 1.74% per year while VYM charges 0.04%. On a $10,000 position that is $174 vs $4 annually, a gap of $170 per year that compounds over a long holding period. On income, VGI currently yields 11.98% against 2.86% for VYM.
Holdings Overlap
VGI and VYM share 0 holdings out of 992 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, VGI or VYM?
VGI has an expense ratio of 1.74% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $170 per year of difference.
Which performed better, VGI or VYM?
Over the past year VGI returned +5.12% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), VGI annualized -2.38% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, VGI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.2% for VGI. Worst drawdown: VGI -63.3% vs VYM -58.8%.
Should I hold both VGI and VYM?
VGI and VYM have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGI and VYM?
VGI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 992 unique securities.
Which pays a higher dividend, VGI or VYM?
VGI yields 11.98% while VYM yields 2.86%, so VGI currently pays the higher dividend yield.
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