VYM vs XHYC
VYM vs XHYC
Vanguard High Dividend Yield ETF vs BondBloxx USD High Yield Bond Consumer Cyclicals Sector 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 | VYM | XHYC | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.35% | |
| AUM | $79.0B | $3M | |
| Dividend Yield | 2.86% | 6.57% | |
| Holdings | 568 | 271 | |
| YTD Return | +15.45% | +0.72% | |
| 1Y Return | +26.05% | +6.77% | |
| 3Y Return (annualized) | +17.96% | +8.33% | |
| 5Y Return (annualized) | +12.54% | - | |
| Volatility (annualized) | 14.6% | 8.0% | |
| Max Drawdown | -58.8% | -13.7% | |
| Fund Family | Vanguard (US) | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Nov 10, 2006 | Feb 15, 2022 |
VYM vs XHYC Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and BondBloxx USD High Yield Bond Consumer Cyclicals Sector ETF (XHYC) is a ETF from BondBloxx. Over the past year VYM returned +26.05% while XHYC returned +6.77%. Year to date, VYM is up 15.45% versus a gain of 0.72% for XHYC.
Over three years, VYM compounded at +17.96% per year against +8.33% for XHYC. Across the full 4-year window we track, VYM has the edge at +7.06% annualized vs +4.77%. 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 8.0% for XHYC. 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 -13.7% for XHYC. 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XHYC charges 0.35%. On a $10,000 position that is $4 vs $35 annually, a gap of $31 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 6.57% for XHYC.
Holdings Overlap
VYM and XHYC share 0 holdings out of 801 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 XHYC?
VYM has an expense ratio of 0.04% while XHYC charges 0.35%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, VYM or XHYC?
Over the past year VYM returned +26.05% vs +6.77% for XHYC, so VYM leads on 1-year performance. Over the longest common window we track (4 years), VYM annualized +7.06% vs +4.77% for XHYC. Past performance does not guarantee future results.
Which is riskier, VYM or XHYC?
VYM has been the more volatile fund at 14.6% annualized versus 8.0% for XHYC. Worst drawdown: VYM -58.8% vs XHYC -13.7%.
Should I hold both VYM and XHYC?
VYM and XHYC have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XHYC?
VYM and XHYC share 0 common holdings with a 0.0% weight overlap. Combined, they hold 801 unique securities.
Which pays a higher dividend, VYM or XHYC?
VYM yields 2.86% while XHYC yields 6.57%, so XHYC currently pays the higher dividend yield.
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