VYM vs WIA

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricVYMWIAWinner
Expense Ratio0.04%0.83%
AUM$79.0B$205M
Dividend Yield2.86%6.98%
Holdings568161
YTD Return+15.57%+1.03%
1Y Return+25.99%+2.48%
3Y Return (annualized)+18.02%+6.20%
5Y Return (annualized)+12.71%-1.10%
Volatility (annualized)14.6%9.7%
Max Drawdown-58.8%-43.6%
Fund FamilyVanguard (US)Franklin Templeton Investments (US)
CategoryEquityFixed Income
InceptionNov 10, 2006Sep 30, 2003

VYM vs WIA Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Western Asset Inflation-Linked Income Fund (WIA) is a ETF from Franklin Templeton Investments (US). Over the past year VYM returned +25.99% while WIA returned +2.48%. Year to date, VYM is up 15.57% versus a gain of 1.03% for WIA.

Over three years, VYM compounded at +18.02% per year against +6.20% for WIA; over five years the annualized figures are +12.71% and -1.10% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs -0.45%. 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 9.7% for WIA. 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 -58.8% for VYM and -43.6% for WIA. 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VYM charges 0.04% per year while WIA charges 0.83%. On a $10,000 position that is $4 vs $83 annually, a gap of $79 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 6.98% for WIA.

Holdings Overlap

0.0%overlap

VYM and WIA share 0 holdings out of 647 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, VYM or WIA?

VYM has an expense ratio of 0.04% while WIA charges 0.83%. VYM is the cheaper option. On a $10,000 investment, that is $79 per year of difference.

Which performed better, VYM or WIA?

Over the past year VYM returned +25.99% vs +2.48% for WIA, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +7.07% vs -0.45% for WIA. Past performance does not guarantee future results.

Which is riskier, VYM or WIA?

VYM has been the more volatile fund at 14.6% annualized versus 9.7% for WIA. Worst drawdown: VYM -58.8% vs WIA -43.6%.

Should I hold both VYM and WIA?

VYM and WIA have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VYM and WIA?

VYM and WIA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 647 unique securities.

Which pays a higher dividend, VYM or WIA?

VYM yields 2.86% while WIA yields 6.98%, so WIA currently pays the higher dividend yield.

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