CDX vs VYM

CDX vs VYM

Which is better, CDX or VYM?

High Yield Bond against Large Cap Value.

VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 79.1%.

Lower Fees: VYMHigher Returns: VYMLess Concentrated: VYM

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

MetricCDXVYM
Expense Ratio0.25%0.04%Best
AUM$360M$81.6B
Dividend Yield8.32%2.24%
Holdings229613
YTD Return-2.51%+14.82%Best
1Y Return-2.87%+20.84%Best
3Y Return (annualized)+6.96%+18.64%Best
5Y Return (annualized)-+12.28%
Volatility (annualized)7.4%Best13.8%
Max Drawdown-13.2%Best-15.8%
$10,000 over 4.6 years$11,898$16,856Best
Top 10 Weight79.1%25.9%Best
Fund FamilySimplify Exchange Traded FundsVanguard (US)
CategoryFixed IncomeEquity
StyleHigh Yield BondLarge Cap Value
InceptionFeb 14, 2022Nov 10, 2006

Volatility and max drawdown, and the $10,000 over 4.6 years row, are measured over the window both funds cover: Feb 15, 2022 to Sep 4, 2026 (4.6 years).

CDX 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 4.6 years both funds cover.

CDX vs VYM Performance

Simplify High Yield ETF (CDX) is an ETF from Simplify Exchange Traded Funds and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year CDX returned -2.87% while VYM returned +20.84%. Year to date, CDX is down 2.51% versus a gain of 14.82% for VYM.

Over three years, CDX compounded at +6.96% per year against +18.64% for VYM.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 13.8% compared with 7.4% for CDX. 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 -13.2% for CDX and -15.8% 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 0.54. They move together some of the time, and apart the rest.

Fees and Cost Over Time

CDX charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, CDX currently yields 8.32% against 2.24% for VYM.

Holdings Overlap

CDX already in VYM9.0%
VYM already in CDX29.0%

9.0% of CDX's money is in holdings VYM also owns. 29.0% of VYM's money is in holdings CDX also owns.

VYM and CDX share little of their money.

83 positions in common, counted across the 210 positions we hold weights for in CDX and 603 in VYM, against full books of 229 and 613.

What only one of them owns

Our book lists 491 positions for VYM that do not appear in our book for CDX (68.5% of the fund), and 63 for CDX that do not appear in VYM (89.7%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in CDXWeight in VYMDifference
AVGOBroadcom Inc0.21%7.29%7.08%
CSCOCisco Systems Inc. - Ordinary Shares0.19%1.93%1.74%
ABBVAbbvie Inc.0.22%1.85%1.63%
UNHUnitedhealth Group Incorporated0.20%1.56%1.36%
HDHome Depot Inc/The0.21%1.46%1.25%
MRKMerck & Company Inc0.23%1.32%1.09%
PMPhilip Morris International Inc.0.22%1.17%0.95%
IBMInternational Business Machines Corp.0.18%1.10%0.92%
AMGNAmgen Inc.0.24%0.75%0.51%
NEENextera Energy Inc0.20%0.76%0.56%

29.0% of VYM is already inside CDX.

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

CDXVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, CDX or VYM?

CDX has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option, by $21 a year on a $10,000 investment.

Which performed better, CDX or VYM?

Over the past year CDX returned -2.87% vs +20.84% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, CDX or VYM?

VYM has been the more volatile fund at 13.8% annualized versus 7.4% for CDX. Worst drawdown: CDX -13.2% vs VYM -15.8%.

Should I hold both CDX and VYM?

CDX and VYM have a monthly-return correlation of 0.54, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between CDX and VYM?

29.0% of VYM's money is in holdings CDX also owns. 29.0% of VYM's is in holdings CDX also owns. They hold 83 positions in common, counted across the 210 positions we hold weights for in CDX and 603 in VYM.

Which pays a higher dividend, CDX or VYM?

CDX yields 8.32% while VYM yields 2.24%, so CDX currently pays the higher dividend yield.

Is VYM better than CDX?

VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 79.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.