VSHY vs VYM
VSHY vs VYM
Virtus Newfleet Short Duration High Yield 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 | VSHY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.04% | |
| AUM | $31M | $79.0B | |
| Dividend Yield | 6.39% | 2.86% | |
| Holdings | 171 | 568 | |
| YTD Return | +2.61% | +13.24% | |
| 1Y Return | +5.74% | +23.76% | |
| 3Y Return (annualized) | +7.79% | +16.97% | |
| 5Y Return (annualized) | +4.01% | +12.26% | |
| Volatility (annualized) | 6.2% | 14.6% | |
| Max Drawdown | -18.6% | -58.8% | |
| Fund Family | Virtus Investment Partners | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 5, 2016 | Nov 10, 2006 |
VSHY vs VYM Performance
Virtus Newfleet Short Duration High Yield Bond ETF (VSHY) is a ETF from Virtus Investment Partners and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VSHY returned +5.74% while VYM returned +23.76%. Year to date, VSHY is up 2.61% versus a gain of 13.24% for VYM.
Over three years, VSHY compounded at +7.79% per year against +16.97% for VYM; over five years the annualized figures are +4.01% and +12.26% respectively. Across the full 10-year window we track, VYM has the edge at +6.96% annualized vs +2.14%. 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 6.2% for VSHY. 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 -18.6% for VSHY 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VSHY charges 0.39% per year while VYM charges 0.04%. On a $10,000 position that is $39 vs $4 annually, a gap of $35 per year that compounds over a long holding period. On income, VSHY currently yields 6.39% against 2.86% for VYM.
Holdings Overlap
VSHY and VYM share 0 holdings out of 559 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, VSHY or VYM?
VSHY has an expense ratio of 0.39% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, VSHY or VYM?
Over the past year VSHY returned +5.74% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), VSHY annualized +2.14% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, VSHY or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.2% for VSHY. Worst drawdown: VSHY -18.6% vs VYM -58.8%.
Should I hold both VSHY and VYM?
VSHY and VYM have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VSHY and VYM?
VSHY and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, VSHY or VYM?
VSHY yields 6.39% while VYM yields 2.86%, so VSHY currently pays the higher dividend yield.
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