VYM vs YEAR

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

MetricVYMYEARWinner
Expense Ratio0.04%0.25%
AUM$79.0B$1.5B
Dividend Yield2.86%4.26%
Holdings568169
YTD Return+13.82%+1.33%
1Y Return+24.08%+3.33%
3Y Return (annualized)+17.72%+4.82%
5Y Return (annualized)+12.13%-
Volatility (annualized)14.6%0.9%
Max Drawdown-58.8%-0.6%
Fund FamilyVanguard (US)AllianceBernstein L.P.
CategoryEquityFixed Income
InceptionNov 10, 2006Sep 13, 2022

VYM vs YEAR Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and AB Ultra Short Income ETF (YEAR) is a ETF from AllianceBernstein L.P.. Over the past year VYM returned +24.08% while YEAR returned +3.33%. Year to date, VYM is up 13.82% versus a gain of 1.33% for YEAR.

Over three years, VYM compounded at +17.72% per year against +4.82% for YEAR. Across the full 4-year window we track, VYM has the edge at +6.98% annualized vs +4.81%. 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 0.9% for YEAR. 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 -0.6% for YEAR. 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VYM charges 0.04% per year while YEAR charges 0.25%. On a $10,000 position that is $4 vs $25 annually, a gap of $21 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 4.26% for YEAR.

Holdings Overlap

0.0%overlap

VYM and YEAR share 0 holdings out of 657 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 YEAR?

VYM has an expense ratio of 0.04% while YEAR charges 0.25%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.

Which performed better, VYM or YEAR?

Over the past year VYM returned +24.08% vs +3.33% for YEAR, so VYM leads on 1-year performance. Over the longest common window we track (4 years), VYM annualized +6.98% vs +4.81% for YEAR. Past performance does not guarantee future results.

Which is riskier, VYM or YEAR?

VYM has been the more volatile fund at 14.6% annualized versus 0.9% for YEAR. Worst drawdown: VYM -58.8% vs YEAR -0.6%.

Should I hold both VYM and YEAR?

VYM and YEAR have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VYM and YEAR?

VYM and YEAR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 657 unique securities.

Which pays a higher dividend, VYM or YEAR?

VYM yields 2.86% while YEAR yields 4.26%, so YEAR currently pays the higher dividend yield.

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