VPU vs VYM
VPU vs VYM
Vanguard Utilities 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 | VPU | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.04% | |
| AUM | $8.7B | $79.0B | |
| Dividend Yield | 2.86% | 2.86% | |
| Holdings | 70 | 568 | |
| YTD Return | +2.08% | +15.45% | |
| 1Y Return | +3.78% | +26.05% | |
| 3Y Return (annualized) | +14.12% | +17.96% | |
| 5Y Return (annualized) | +8.32% | +12.54% | |
| Volatility (annualized) | 13.9% | 14.6% | |
| Max Drawdown | -48.4% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Nov 10, 2006 |
VPU vs VYM Performance
Vanguard Utilities ETF (VPU) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VPU returned +3.78% while VYM returned +26.05%. Year to date, VPU is up 2.08% versus a gain of 15.45% for VYM.
Over three years, VPU compounded at +14.12% per year against +17.96% for VYM; over five years the annualized figures are +8.32% and +12.54% respectively. Across the full 20-year window we track, VYM has the edge at +7.06% annualized vs +6.88%. 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 13.9% for VPU. 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 -48.4% for VPU 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VPU 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, VPU currently yields 2.86% against 2.86% for VYM.
Holdings Overlap
VPU and VYM share 51 holdings out of 575 unique holdings combined, representing a 6.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VPU | Weight in VYM | Difference |
|---|---|---|---|
| NEE | 11.60% | 0.86% | 10.74% |
| SO | 6.84% | 0.47% | 6.37% |
| DUK | 6.24% | 0.45% | 5.79% |
| AEP | Pro | Pro | Pro |
| SRE | Pro | Pro | Pro |
| D | Pro | Pro | Pro |
| ETR | Pro | Pro | Pro |
| XEL | Pro | Pro | Pro |
| EXC | Pro | Pro | Pro |
| ED | Pro | Pro | Pro |
See all 10 holdings VPU 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, VPU or VYM?
VPU 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, VPU or VYM?
Over the past year VPU returned +3.78% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VPU annualized +6.88% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, VPU or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.9% for VPU. Worst drawdown: VPU -48.4% vs VYM -58.8%.
Should I hold both VPU and VYM?
VPU and VYM have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VPU and VYM?
VPU and VYM share 51 common holdings with a 6.0% weight overlap. Combined, they hold 575 unique securities.
Which pays a higher dividend, VPU or VYM?
VPU yields 2.86% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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