VYM vs WIW
VYM vs WIW
Vanguard High Dividend Yield ETF vs Western Asset Inflation-Linked Opportunities & Income Fund
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 | VYM | WIW | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.71% | |
| AUM | $79.0B | $569M | |
| Dividend Yield | 2.86% | 7.95% | |
| Holdings | 568 | 161 | |
| YTD Return | +13.82% | +1.74% | |
| 1Y Return | +24.08% | +2.66% | |
| 3Y Return (annualized) | +17.72% | +6.34% | |
| 5Y Return (annualized) | +12.13% | +0.05% | |
| Volatility (annualized) | 14.6% | 10.0% | |
| Max Drawdown | -58.8% | -43.9% | |
| Fund Family | Vanguard (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Nov 10, 2006 | Feb 27, 2004 |
VYM vs WIW Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Western Asset Inflation-Linked Opportunities & Income Fund (WIW) is a ETF from Franklin Templeton Investments (US). Over the past year VYM returned +24.08% while WIW returned +2.66%. Year to date, VYM is up 13.82% versus a gain of 1.74% for WIW.
Over three years, VYM compounded at +17.72% per year against +6.34% for WIW; over five years the annualized figures are +12.13% and +0.05% respectively. Across the full 20-year window we track, VYM has the edge at +6.98% annualized vs -0.42%. 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 10.0% for WIW. 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 -43.9% for WIW. 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while WIW charges 0.71%. On a $10,000 position that is $4 vs $71 annually, a gap of $67 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 7.95% for WIW.
Holdings Overlap
VYM and WIW share 0 holdings out of 654 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 WIW?
VYM has an expense ratio of 0.04% while WIW charges 0.71%. VYM is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, VYM or WIW?
Over the past year VYM returned +24.08% vs +2.66% for WIW, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.98% vs -0.42% for WIW. Past performance does not guarantee future results.
Which is riskier, VYM or WIW?
VYM has been the more volatile fund at 14.6% annualized versus 10.0% for WIW. Worst drawdown: VYM -58.8% vs WIW -43.9%.
Should I hold both VYM and WIW?
VYM and WIW have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and WIW?
VYM and WIW share 0 common holdings with a 0.0% weight overlap. Combined, they hold 654 unique securities.
Which pays a higher dividend, VYM or WIW?
VYM yields 2.86% while WIW yields 7.95%, so WIW currently pays the higher dividend yield.
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