ACES vs VYM

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

MetricACESVYMWinner
Expense Ratio0.55%0.04%
AUM$109M$79.0B
Dividend Yield1.22%2.86%
Holdings38568
YTD Return-4.16%+15.80%
1Y Return+21.72%+26.12%
3Y Return (annualized)-8.79%+18.25%
5Y Return (annualized)-13.98%+12.51%
Volatility (annualized)35.4%14.6%
Max Drawdown-79.0%-58.8%
Fund FamilyALPS AdvisorsVanguard (US)
CategoryEquityEquity
InceptionJun 27, 2018Nov 10, 2006

ACES vs VYM Performance

ALPS Clean Energy ETF (ACES) is a ETF from ALPS Advisors and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ACES returned +21.72% while VYM returned +26.12%. Year to date, ACES is down 4.16% versus a gain of 15.80% for VYM.

Over three years, ACES compounded at -8.79% per year against +18.25% for VYM; over five years the annualized figures are -13.98% and +12.51% respectively. Across the full 8-year window we track, VYM has the edge at +7.07% annualized vs +3.76%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ACES has been the more volatile fund, with annualized monthly volatility of 35.4% 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 -79.0% for ACES and -58.8% for VYM. 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

ACES charges 0.55% per year while VYM charges 0.04%. On a $10,000 position that is $55 vs $4 annually, a gap of $51 per year that compounds over a long holding period. On income, ACES currently yields 1.22% against 2.86% for VYM.

Holdings Overlap

0.1%overlap

ACES and VYM share 3 holdings out of 592 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in ACESWeight in VYMDifference
HASI6.16%0.02%6.14%
CWEN5.02%0.01%5.01%
ALB4.59%0.09%4.50%

Frequently Asked Questions

Which is cheaper, ACES or VYM?

ACES has an expense ratio of 0.55% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $51 per year of difference.

Which performed better, ACES or VYM?

Over the past year ACES returned +21.72% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), ACES annualized +3.76% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, ACES or VYM?

ACES has been the more volatile fund at 35.4% annualized versus 14.6% for VYM. Worst drawdown: ACES -79.0% vs VYM -58.8%.

Should I hold both ACES and VYM?

ACES and VYM 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 ACES and VYM?

ACES and VYM share 3 common holdings with a 0.1% weight overlap. Combined, they hold 592 unique securities.

Which pays a higher dividend, ACES or VYM?

ACES yields 1.22% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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