VGVT vs VYM
VGVT vs VYM
Vanguard Government Securities Active 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 | VGVT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.04% | |
| AUM | $39M | $79.0B | |
| Dividend Yield | 3.96% | 2.86% | |
| Holdings | 194 | 568 | |
| YTD Return | -0.33% | +15.80% | |
| 1Y Return | +1.88% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 3.2% | 14.6% | |
| Max Drawdown | -2.8% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 18, 2025 | Nov 10, 2006 |
VGVT vs VYM Performance
Vanguard Government Securities Active ETF (VGVT) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VGVT returned +1.88% while VYM returned +26.12%. Year to date, VGVT is down 0.33% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.2% for VGVT. 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 -2.8% for VGVT 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGVT charges 0.10% per year while VYM charges 0.04%. On a $10,000 position that is $10 vs $4 annually, a gap of $6 per year that compounds over a long holding period. On income, VGVT currently yields 3.96% against 2.86% for VYM.
Holdings Overlap
VGVT and VYM share 0 holdings out of 701 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, VGVT or VYM?
VGVT has an expense ratio of 0.10% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VGVT or VYM?
Over the past year VGVT returned +1.88% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), VGVT annualized +2.66% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, VGVT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.2% for VGVT. Worst drawdown: VGVT -2.8% vs VYM -58.8%.
Should I hold both VGVT and VYM?
VGVT and VYM have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGVT and VYM?
VGVT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 701 unique securities.
Which pays a higher dividend, VGVT or VYM?
VGVT yields 3.96% while VYM yields 2.86%, so VGVT currently pays the higher dividend yield.
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