ALTY vs VYM
Global X Alternative Income ETF vs Vanguard High Dividend Yield 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 | ALTY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $46M | $79.0B | |
| Dividend Yield | 7.39% | 2.86% | |
| Holdings | 21 | 568 | |
| YTD Return | +6.45% | +16.16% | |
| 1Y Return | +13.05% | +26.05% | |
| 3Y Return (annualized) | +11.36% | +18.43% | |
| 5Y Return (annualized) | +5.33% | +12.21% | |
| Volatility (annualized) | 16.2% | 14.6% | |
| Max Drawdown | -60.1% | -58.8% | |
| Fund Family | Global X by mirae Asset | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jul 13, 2015 | Nov 10, 2006 |
ALTY vs VYM Performance
Global X Alternative Income ETF (ALTY) is a ETF from Global X by mirae Asset and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ALTY returned +13.05% while VYM returned +26.05%. Year to date, ALTY is up 6.45% versus a gain of 16.16% for VYM.
Over three years, ALTY compounded at +11.36% per year against +18.43% for VYM; over five years the annualized figures are +5.33% and +12.21% respectively. Across the full 11-year window we track, VYM has the edge at +7.09% annualized vs +1.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ALTY has been the more volatile fund, with annualized monthly volatility of 16.2% 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 -60.1% for ALTY 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ALTY charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, ALTY currently yields 7.39% against 2.86% for VYM.
Holdings Overlap
ALTY and VYM share 6 holdings out of 571 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ALTY or VYM?
ALTY has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, ALTY or VYM?
Over the past year ALTY returned +13.05% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (11 years), ALTY annualized +1.75% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, ALTY or VYM?
ALTY has been the more volatile fund at 16.2% annualized versus 14.6% for VYM. Worst drawdown: ALTY -60.1% vs VYM -58.8%.
Should I hold both ALTY and VYM?
ALTY and VYM have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ALTY and VYM?
ALTY and VYM share 6 common holdings with a 0.4% weight overlap. Combined, they hold 571 unique securities.
Which pays a higher dividend, ALTY or VYM?
ALTY yields 7.39% while VYM yields 2.86%, so ALTY currently pays the higher dividend yield.
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