CGHY vs VYM
Capital Group High Yield Bond 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 | CGHY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.04% | |
| AUM | $121M | $79.0B | |
| Dividend Yield | 5.46% | 2.86% | |
| Holdings | 202 | 568 | |
| YTD Return | +2.46% | +16.53% | |
| 1Y Return | +5.55% | +25.03% | |
| 3Y Return (annualized) | - | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 2.2% | 14.6% | |
| Max Drawdown | -2.4% | -58.8% | |
| Fund Family | Capital Group (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 24, 2025 | Nov 10, 2006 |
CGHY vs VYM Performance
Capital Group High Yield Bond ETF (CGHY) is a ETF from Capital Group (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CGHY returned +5.55% while VYM returned +25.03%. Year to date, CGHY is up 2.46% versus a gain of 16.53% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 2.2% for CGHY. 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 -2.4% for CGHY 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
CGHY charges 0.39% per year while VYM charges 0.04%. On a $10,000 position that is $39 vs $4 annually, a gap of $35 per year that compounds over a long holding period. On income, CGHY currently yields 5.46% against 2.86% for VYM.
Holdings Overlap
CGHY and VYM share 0 holdings out of 702 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, CGHY or VYM?
CGHY has an expense ratio of 0.39% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, CGHY or VYM?
Over the past year CGHY returned +5.55% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), CGHY annualized +5.57% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, CGHY or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 2.2% for CGHY. Worst drawdown: CGHY -2.4% vs VYM -58.8%.
Should I hold both CGHY and VYM?
CGHY and VYM have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGHY and VYM?
CGHY and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 702 unique securities.
Which pays a higher dividend, CGHY or VYM?
CGHY yields 5.46% while VYM yields 2.86%, so CGHY currently pays the higher dividend yield.
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