VLU vs VYM

Quick Verdict

VYM has a lower expense ratio. VLU delivered stronger 1-year returns. VLU offers more diversification with 1497 holdings.

Lower Fees: VYMHigher Returns: VLUMore Diversified: VLU

Side-by-Side Comparison

MetricVLUVYMWinner
Expense Ratio0.12%0.04%
AUM$750M$79.0B
Dividend Yield1.63%2.86%
Holdings1,506568
YTD Return+18.20%+15.57%
1Y Return+31.34%+25.99%
3Y Return (annualized)+19.63%+18.02%
5Y Return (annualized)+13.39%+12.71%
Volatility (annualized)15.8%14.6%
Max Drawdown-37.9%-58.8%
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryEquityEquity
InceptionOct 24, 2012Nov 10, 2006

VLU vs VYM Performance

State Street SPDR S&P 1500 Value Tilt ETF (VLU) is a ETF from State Street Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VLU returned +31.34% while VYM returned +25.99%. Year to date, VLU is up 18.20% versus a gain of 15.57% for VYM.

Over three years, VLU compounded at +19.63% per year against +18.02% for VYM; over five years the annualized figures are +13.39% and +12.71% respectively. Across the full 14-year window we track, VLU has the edge at +11.71% annualized vs +7.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VLU 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 -37.9% for VLU 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

VLU charges 0.12% per year while VYM charges 0.04%. On a $10,000 position that is $12 vs $4 annually, a gap of $8 per year that compounds over a long holding period. On income, VLU currently yields 1.63% against 2.86% for VYM.

Holdings Overlap

45.1%overlap

VLU and VYM share 499 holdings out of 1556 unique holdings combined, representing a 45.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VLUWeight in VYMDifference
AVGO0.56%6.47%5.91%
JPM1.43%3.36%1.93%
XOM1.32%2.83%1.51%
WMTProProPro
JNJProProPro
CVXProProPro
UNHProProPro
VZProProPro
HDProProPro
ABBVProProPro
See all 10 holdings VLU shares with VYM
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, VLU or VYM?

VLU has an expense ratio of 0.12% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $8 per year of difference.

Which performed better, VLU or VYM?

Over the past year VLU returned +31.34% vs +25.99% for VYM, so VLU leads on 1-year performance. Over the longest common window we track (14 years), VLU annualized +11.71% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, VLU or VYM?

VLU has been the more volatile fund at 15.8% annualized versus 14.6% for VYM. Worst drawdown: VLU -37.9% vs VYM -58.8%.

Should I hold both VLU and VYM?

VLU and VYM have a monthly-return correlation of 0.92, 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 VLU and VYM?

VLU and VYM share 499 common holdings with a 45.1% weight overlap. Combined, they hold 1556 unique securities.

Which pays a higher dividend, VLU or VYM?

VLU yields 1.63% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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