DEFR vs VYM
Aptus Deferred Income 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 | DEFR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.04% | |
| AUM | $142M | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 11 | 568 | |
| YTD Return | -0.23% | +16.53% | |
| 1Y Return | +3.21% | +25.03% | |
| 3Y Return (annualized) | - | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 4.3% | 14.6% | |
| Max Drawdown | -3.9% | -58.8% | |
| Fund Family | Aptus Capital Advisors | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 13, 2025 | Nov 10, 2006 |
DEFR vs VYM Performance
Aptus Deferred Income ETF (DEFR) is a ETF from Aptus Capital Advisors and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DEFR returned +3.21% while VYM returned +25.03%. Year to date, DEFR is down 0.23% 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 4.3% for DEFR. 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 -3.9% for DEFR 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DEFR charges 0.79% per year while VYM charges 0.04%. On a $10,000 position that is $79 vs $4 annually, a gap of $75 per year that compounds over a long holding period. On income, DEFR currently yields 0.00% against 2.86% for VYM.
Holdings Overlap
DEFR and VYM share 0 holdings out of 559 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, DEFR or VYM?
DEFR has an expense ratio of 0.79% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $75 per year of difference.
Which performed better, DEFR or VYM?
Over the past year DEFR returned +3.21% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), DEFR annualized +5.28% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, DEFR or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.3% for DEFR. Worst drawdown: DEFR -3.9% vs VYM -58.8%.
Should I hold both DEFR and VYM?
DEFR and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DEFR and VYM?
DEFR and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, DEFR or VYM?
DEFR yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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