ALAI vs VYM
Alger AI Enablers & Adopters ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. ALAI delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | ALAI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.04% | |
| AUM | $523M | $81.6B | |
| Dividend Yield | 1.26% | 2.24% | |
| Holdings | 72 | 616 | |
| YTD Return | +22.89% | +15.25% | |
| 1Y Return | +35.75% | +22.18% | |
| 3Y Return (annualized) | - | +18.83% | |
| 5Y Return (annualized) | - | +12.09% | |
| Volatility (annualized) | 25.9% | 14.6% | |
| Max Drawdown | -29.4% | -58.8% | |
| Fund Family | Alger | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 4, 2024 | Nov 10, 2006 |
ALAI vs VYM Performance
Alger AI Enablers & Adopters ETF (ALAI) is a ETF from Alger and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ALAI returned +35.75% while VYM returned +22.18%. Year to date, ALAI is up 22.89% versus a gain of 15.25% for VYM.
Risk: Volatility and Drawdowns
ALAI has been the more volatile fund, with annualized monthly volatility of 25.9% 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 -29.4% for ALAI 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ALAI charges 0.58% per year while VYM charges 0.04%. On a $10,000 position that is $58 vs $4 annually, a gap of $54 per year that compounds over a long holding period. On income, ALAI currently yields 1.26% against 2.24% for VYM.
Holdings Overlap
ALAI and VYM share 7 holdings out of 659 unique holdings combined, representing a 6.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ALAI or VYM?
ALAI has an expense ratio of 0.58% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, ALAI or VYM?
Over the past year ALAI returned +35.75% vs +22.18% for VYM, so ALAI leads on 1-year performance. Over the longest common window we track (2 years), ALAI annualized +40.99% vs +7.03% for VYM. Past performance does not guarantee future results.
Which is riskier, ALAI or VYM?
ALAI has been the more volatile fund at 25.9% annualized versus 14.6% for VYM. Worst drawdown: ALAI -29.4% vs VYM -58.8%.
Should I hold both ALAI and VYM?
ALAI and VYM have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ALAI and VYM?
ALAI and VYM share 7 common holdings with a 6.4% weight overlap. Combined, they hold 659 unique securities.
Which pays a higher dividend, ALAI or VYM?
ALAI yields 1.26% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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