VSDB vs VYM
VSDB vs VYM
Vanguard Short Duration Bond 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 | VSDB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $896M | $79.0B | |
| Dividend Yield | 4.16% | 2.86% | |
| Holdings | 833 | 568 | |
| YTD Return | -0.78% | +15.45% | |
| 1Y Return | +1.64% | +26.05% | |
| 3Y Return (annualized) | - | +17.96% | |
| 5Y Return (annualized) | - | +12.54% | |
| Volatility (annualized) | 2.0% | 14.6% | |
| Max Drawdown | -1.8% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 1, 2025 | Nov 10, 2006 |
VSDB vs VYM Performance
Vanguard Short Duration Bond ETF (VSDB) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VSDB returned +1.64% while VYM returned +26.05%. Year to date, VSDB is down 0.78% versus a gain of 15.45% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 2.0% for VSDB. 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 -1.8% for VSDB 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VSDB charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, VSDB currently yields 4.16% against 2.86% for VYM.
Holdings Overlap
VSDB and VYM share 0 holdings out of 632 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, VSDB or VYM?
VSDB has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, VSDB or VYM?
Over the past year VSDB returned +1.64% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), VSDB annualized +3.78% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, VSDB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 2.0% for VSDB. Worst drawdown: VSDB -1.8% vs VYM -58.8%.
Should I hold both VSDB and VYM?
VSDB and VYM have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VSDB and VYM?
VSDB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 632 unique securities.
Which pays a higher dividend, VSDB or VYM?
VSDB yields 4.16% while VYM yields 2.86%, so VSDB currently pays the higher dividend yield.
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