ARCM vs VYM
Arrow Reserve Capital Management 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 | ARCM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $51M | $79.0B | |
| Dividend Yield | 3.67% | 2.86% | |
| Holdings | 102 | 568 | |
| YTD Return | +0.74% | +16.10% | |
| 1Y Return | +2.33% | +25.99% | |
| 3Y Return (annualized) | +4.21% | +18.29% | |
| 5Y Return (annualized) | +3.05% | +12.35% | |
| Volatility (annualized) | 1.0% | 14.6% | |
| Max Drawdown | -4.8% | -58.8% | |
| Fund Family | Arrow Investment Trust | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 31, 2017 | Nov 10, 2006 |
ARCM vs VYM Performance
Arrow Reserve Capital Management ETF (ARCM) is a ETF from Arrow Investment Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ARCM returned +2.33% while VYM returned +25.99%. Year to date, ARCM is up 0.74% versus a gain of 16.10% for VYM.
Over three years, ARCM compounded at +4.21% per year against +18.29% for VYM; over five years the annualized figures are +3.05% and +12.35% respectively. Across the full 9-year window we track, VYM has the edge at +7.08% annualized vs +1.64%. 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 1.0% for ARCM. 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 -4.8% for ARCM 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ARCM 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, ARCM currently yields 3.67% against 2.86% for VYM.
Holdings Overlap
ARCM and VYM share 0 holdings out of 647 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, ARCM or VYM?
ARCM 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, ARCM or VYM?
Over the past year ARCM returned +2.33% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), ARCM annualized +1.64% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, ARCM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.0% for ARCM. Worst drawdown: ARCM -4.8% vs VYM -58.8%.
Should I hold both ARCM and VYM?
ARCM and VYM have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARCM and VYM?
ARCM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 647 unique securities.
Which pays a higher dividend, ARCM or VYM?
ARCM yields 3.67% while VYM yields 2.86%, so ARCM currently pays the higher dividend yield.
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