ACWI vs VYM

ACWI vs VYM

Which is better, ACWI or VYM?

Large Cap Blend against Large Cap Value.

VYM has a lower expense ratio. ACWI led over 1Y and 3Y, VYM over 5Y and the full window. The two have moved almost in lockstep, correlation 0.90.

Lower Fees: VYMHigher Returns: split

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricACWIVYM
Expense Ratio0.32%0.04%Best
AUM$33.0B$81.6B
Dividend Yield1.40%2.22%
Holdings2,280613
YTD Return+14.33%Best+11.47%
1Y Return+18.73%Best+15.94%
3Y Return (annualized)+21.88%Best+18.03%
5Y Return (annualized)+11.61%+12.35%Best
Volatility (annualized)16.6%14.8%Best
Max Drawdown-56.3%-53.6%Best
$10,000 over 5 years$17,319$17,901Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Value
InceptionMar 26, 2008Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Mar 28, 2008 to Sep 21, 2026 (18.5 years).

ACWI vs VYM growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 18.5 years both funds cover.

ACWI vs VYM Performance

iShares MSCI ACWI ETF (ACWI) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year ACWI returned +18.73% while VYM returned +15.94%. Year to date, ACWI is up 14.33% versus a gain of 11.47% for VYM.

Over three years, ACWI compounded at +21.88% per year against +18.03% for VYM; over five years the annualized figures are +11.61% and +12.35% respectively. Across the full 19-year window we track, VYM has the edge at +7.78% annualized vs +7.05%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ACWI has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 14.8% 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 -56.3% for ACWI and -53.6% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

ACWI charges 0.32% per year while VYM charges 0.04%. On a $10,000 position that is $32 vs $4 annually, a gap of $28 per year that compounds over a long holding period. On income, ACWI currently yields 1.40% against 2.22% for VYM.

Holdings Overlap

VYM already in ACWI87.1%

At least 87.1% of VYM's money is in holdings ACWI also owns.

Stated as a floor: for ACWI, our book for it covers 92.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

Most of VYM is already inside ACWI. Owning both mostly buys the same companies twice.

203 positions in common, counted across the 1,480 positions we hold weights for in ACWI and 557 in VYM, against full books of 2,280 and 613.

Top Shared Holdings

StockWeight in ACWIWeight in VYMDifference
AVGOBroadcom Inc1.61%7.35%5.74%
JPMJpmorgan Chase0.91%3.82%2.91%
XOMExxon Mobil Corp.0.64%2.63%1.99%
JNJJohnson & Johnson - Common0.61%2.51%1.90%
CSCOCisco Systems Inc. - Ordinary Shares0.42%1.86%1.44%
ABBVAbbvie Inc.0.43%1.80%1.37%
BACBank of America Corp.: Financials0.38%1.66%1.28%
UNHUnitedhealth Group Incorporated0.34%1.52%1.18%
CVXChevron Corp0.37%1.48%1.11%
CATCaterpillar, Inc.0.35%1.50%1.15%

87.1% of VYM is already inside ACWI.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

ACWIVYM

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Frequently Asked Questions

Which is cheaper, ACWI or VYM?

ACWI has an expense ratio of 0.32% while VYM charges 0.04%. VYM is the cheaper option, by $28 a year on a $10,000 investment.

Which performed better, ACWI or VYM?

Over the past year ACWI returned +18.73% vs +15.94% for VYM, so ACWI leads on 1-year performance. Over the longest common window we track (19 years), ACWI annualized +7.05% vs +7.78% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, ACWI or VYM?

ACWI has been the more volatile fund at 16.6% annualized versus 14.8% for VYM. Worst drawdown: ACWI -56.3% vs VYM -53.6%.

Should I hold both ACWI and VYM?

ACWI and VYM have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between ACWI and VYM?

At least 87.1% of VYM's money is in holdings ACWI also owns. Our book for ACWI is partial, so the real figure is this or higher. They hold 203 positions in common, counted across the 1,480 positions we hold weights for in ACWI and 557 in VYM.

Which pays a higher dividend, ACWI or VYM?

ACWI yields 1.40% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.

Is VYM better than ACWI?

VYM has a lower expense ratio. ACWI led over 1Y and 3Y, VYM over 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. Which one suits a particular account depends on what it is for. This is information, not a recommendation.