VYM vs XLG
VYM vs XLG
Vanguard High Dividend Yield ETF vs Invesco S&P 500 Top 50 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 | XLG | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.20% | |
| AUM | $79.0B | $10.4B | |
| Dividend Yield | 2.86% | 0.65% | |
| Holdings | 568 | 53 | |
| YTD Return | +15.57% | +7.19% | |
| 1Y Return | +25.99% | +18.40% | |
| 3Y Return (annualized) | +18.02% | +22.08% | |
| 5Y Return (annualized) | +12.71% | +14.44% | |
| Volatility (annualized) | 14.6% | 15.0% | |
| Max Drawdown | -58.8% | -53.8% | |
| Fund Family | Vanguard (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | May 4, 2005 |
VYM vs XLG Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Invesco S&P 500 Top 50 ETF (XLG) is a ETF from Invesco (US). Over the past year VYM returned +25.99% while XLG returned +18.40%. Year to date, VYM is up 15.57% versus a gain of 7.19% for XLG.
Over three years, VYM compounded at +18.02% per year against +22.08% for XLG; over five years the annualized figures are +12.71% and +14.44% respectively. Across the full 20-year window we track, XLG has the edge at +9.83% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLG has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -58.8% for VYM and -53.8% for XLG. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XLG charges 0.20%. On a $10,000 position that is $4 vs $20 annually, a gap of $16 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 0.65% for XLG.
Holdings Overlap
VYM and XLG share 24 holdings out of 586 unique holdings combined, representing a 25.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VYM | Weight in XLG | Difference |
|---|---|---|---|
| AVGO | 6.47% | 4.40% | 2.07% |
| JPM | 3.36% | 2.20% | 1.16% |
| XOM | 2.83% | 1.40% | 1.43% |
| JNJ | Pro | Pro | Pro |
| WMT | Pro | Pro | Pro |
| ABBV | Pro | Pro | Pro |
| CAT | Pro | Pro | Pro |
| PG | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
| HD | Pro | Pro | Pro |
See all 10 holdings VYM shares with XLG Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, VYM or XLG?
VYM has an expense ratio of 0.04% while XLG charges 0.20%. VYM is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, VYM or XLG?
Over the past year VYM returned +25.99% vs +18.40% for XLG, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +7.07% vs +9.83% for XLG. Past performance does not guarantee future results.
Which is riskier, VYM or XLG?
XLG has been the more volatile fund at 15.0% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XLG -53.8%.
Should I hold both VYM and XLG?
VYM and XLG have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XLG?
VYM and XLG share 24 common holdings with a 25.3% weight overlap. Combined, they hold 586 unique securities.
Which pays a higher dividend, VYM or XLG?
VYM yields 2.86% while XLG yields 0.65%, so VYM currently pays the higher dividend yield.
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