CDX vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricCDXVYMWinner
Expense Ratio0.25%0.04%
AUM$377M$79.0B
Dividend Yield8.31%2.86%
Holdings227568
YTD Return-1.94%+15.80%
1Y Return-3.14%+26.12%
3Y Return (annualized)+7.23%+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)7.5%14.6%
Max Drawdown-13.2%-58.8%
Fund FamilySimplify Exchange Traded FundsVanguard (US)
CategoryFixed IncomeEquity
InceptionFeb 14, 2022Nov 10, 2006

CDX vs VYM Performance

Simplify High Yield ETF (CDX) is a ETF from Simplify Exchange Traded Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CDX returned -3.14% while VYM returned +26.12%. Year to date, CDX is down 1.94% versus a gain of 15.80% for VYM.

Over three years, CDX compounded at +7.23% per year against +18.25% for VYM. Across the full 5-year window we track, VYM has the edge at +7.07% annualized vs +4.05%. 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 7.5% 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 -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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.

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 8.31% against 2.86% for VYM.

Holdings Overlap

3.9%overlap

CDX and VYM share 38 holdings out of 676 unique holdings combined, representing a 3.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in CDXWeight in VYMDifference
JNJ0.27%2.62%2.35%
PM0.27%1.28%1.01%
IBM0.25%0.98%0.73%
ABTProProPro
ACNProProPro
SBUXProProPro
ITWProProPro
VZProProPro
SLB:CWProProPro
BKRProProPro
See all 10 holdings CDX shares with VYM
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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. On a $10,000 investment, that is $21 per year of difference.

Which performed better, CDX or VYM?

Over the past year CDX returned -3.14% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), CDX annualized +4.05% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, CDX or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 7.5% for CDX. Worst drawdown: CDX -13.2% vs VYM -58.8%.

Should I hold both CDX and VYM?

CDX and VYM have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between CDX and VYM?

CDX and VYM share 38 common holdings with a 3.9% weight overlap. Combined, they hold 676 unique securities.

Which pays a higher dividend, CDX or VYM?

CDX yields 8.31% while VYM yields 2.86%, so CDX currently pays the higher dividend yield.

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