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.

Lower Fees: VYMHigher Returns: 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$357M$81.6B
Dividend Yield8.22%2.22%
Holdings229613
YTD Return-3.32%+10.24%Best
1Y Return-3.88%+14.89%Best
3Y Return (annualized)+6.57%+18.00%Best
5Y Return (annualized)-+11.42%
Volatility (annualized)7.4%Best13.9%
Max Drawdown-13.2%Best-15.8%
$10,000 over 4.6 years$11,772$16,081Best
Fund FamilySimplify Exchange Traded FundsVanguard (US)
CategoryFixed IncomeEquity
StyleHigh Yield BondLarge Cap Value
InceptionFeb 14, 2022Nov 10, 2006

Not shown on this pair: Top 10 Weight.

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 25, 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 -3.88% while VYM returned +14.89%. Year to date, CDX is down 3.32% versus a gain of 10.24% for VYM.

Over three years, CDX compounded at +6.57% per year against +18.00% 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 13.9% 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 8.22% against 2.22% for VYM.

Holdings Overlap

VYM already in CDX29.0%

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

Only one direction is shown: for CDX, our book for it lists positions totalling 120.6% of the fund, which is what a leveraged book looks like and is not a denominator we can divide by.

VYM and CDX share little of their money.

82 positions in common, counted across the 209 positions we hold weights for in CDX and 557 in VYM, against full books of 229 and 613.

Top Shared Holdings

StockWeight in CDXWeight in VYMDifference
AVGOBroadcom Inc0.20%7.35%7.15%
CSCOCisco Systems Inc. - Ordinary Shares0.19%1.86%1.67%
ABBVAbbvie Inc.0.22%1.80%1.58%
UNHUnitedhealth Group Incorporated0.20%1.52%1.32%
MRKMerck & Company Inc0.25%1.31%1.06%
HDHome Depot Inc/The0.21%1.34%1.13%
PMPhilip Morris International Inc.0.22%1.21%0.99%
AMGNAmgen Inc.0.25%0.78%0.53%
IBMInternational Business Machines Corp.0.18%0.85%0.67%
NEENextera Energy Inc0.20%0.74%0.54%

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 -3.88% vs +14.89% 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 13.9% 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?

At least 29.0% of VYM's money is in holdings CDX also owns. Our book for CDX is partial, so the real figure is this or higher. They hold 82 positions in common, counted across the 209 positions we hold weights for in CDX and 557 in VYM.

Which pays a higher dividend, CDX or VYM?

CDX yields 8.22% while VYM yields 2.22%, 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. Which one suits a particular account depends on what it is for. This is information, not a recommendation.