VTI vs VYM

Quick Verdict

VTI has a lower expense ratio. VYM delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VYMMore Diversified: VTI

Side-by-Side Comparison

MetricVTIVYMWinner
Expense Ratio0.03%0.04%
AUM$663.5B$79.0B
Dividend Yield1.07%2.86%
Holdings3,543568
YTD Return+10.14%+13.24%
1Y Return+19.82%+23.76%
3Y Return (annualized)+18.94%+16.97%
5Y Return (annualized)+11.79%+12.26%
Volatility (annualized)15.4%14.6%
Max Drawdown-56.6%-58.8%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
InceptionMay 24, 2001Nov 10, 2006

VTI vs VYM Performance

Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VTI returned +19.82% while VYM returned +23.76%. Year to date, VTI is up 10.14% versus a gain of 13.24% for VYM.

Over three years, VTI compounded at +18.94% per year against +16.97% for VYM; over five years the annualized figures are +11.79% and +12.26% respectively. Across the full 20-year window we track, VTI has the edge at +7.99% annualized vs +6.96%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -56.6% for VTI 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

VTI charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VTI currently yields 1.07% against 2.86% for VYM.

Holdings Overlap

29.2%overlap

VTI and VYM share 455 holdings out of 2886 unique holdings combined, representing a 29.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VTIWeight in VYMDifference
AVGO2.46%6.47%4.01%
JPM1.11%3.36%2.25%
XOM0.78%2.83%2.05%
JNJProProPro
WMTProProPro
ABBVProProPro
PGProProPro
CATProProPro
HDProProPro
CSCOProProPro
See all 10 holdings VTI shares with VYM
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Frequently Asked Questions

Which is cheaper, VTI or VYM?

VTI has an expense ratio of 0.03% while VYM charges 0.04%. VTI is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, VTI or VYM?

Over the past year VTI returned +19.82% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VTI annualized +7.99% vs +6.96% for VYM. Past performance does not guarantee future results.

Which is riskier, VTI or VYM?

VTI has been the more volatile fund at 15.4% annualized versus 14.6% for VYM. Worst drawdown: VTI -56.6% vs VYM -58.8%.

Should I hold both VTI and VYM?

VTI 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 VTI and VYM?

VTI and VYM share 455 common holdings with a 29.2% weight overlap. Combined, they hold 2886 unique securities.

Which pays a higher dividend, VTI or VYM?

VTI yields 1.07% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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