DIVY vs VYM
Sound Equity Dividend Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. DIVY delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | DIVY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.04% | |
| AUM | $29M | $79.0B | |
| Dividend Yield | 3.11% | 2.86% | |
| Holdings | 37 | 568 | |
| YTD Return | +17.96% | +16.10% | |
| 1Y Return | +26.62% | +25.99% | |
| 3Y Return (annualized) | +9.88% | +18.29% | |
| 5Y Return (annualized) | +8.21% | +12.35% | |
| Volatility (annualized) | 15.0% | 14.6% | |
| Max Drawdown | -18.3% | -58.8% | |
| Fund Family | Sound Income Strategies | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 30, 2020 | Nov 10, 2006 |
DIVY vs VYM Performance
Sound Equity Dividend Income ETF (DIVY) is a ETF from Sound Income Strategies and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DIVY returned +26.62% while VYM returned +25.99%. Year to date, DIVY is up 17.96% versus a gain of 16.10% for VYM.
Over three years, DIVY compounded at +9.88% per year against +18.29% for VYM; over five years the annualized figures are +8.21% and +12.35% respectively. Across the full 6-year window we track, DIVY has the edge at +12.15% annualized vs +7.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DIVY has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 14.6% for VYM. 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 -18.3% for DIVY 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
DIVY charges 0.45% per year while VYM charges 0.04%. On a $10,000 position that is $45 vs $4 annually, a gap of $41 per year that compounds over a long holding period. On income, DIVY currently yields 3.11% against 2.86% for VYM.
Holdings Overlap
DIVY and VYM share 31 holdings out of 563 unique holdings combined, representing a 10.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DIVY or VYM?
DIVY has an expense ratio of 0.45% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, DIVY or VYM?
Over the past year DIVY returned +26.62% vs +25.99% for VYM, so DIVY leads on 1-year performance. Over the longest common window we track (6 years), DIVY annualized +12.15% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, DIVY or VYM?
DIVY has been the more volatile fund at 15.0% annualized versus 14.6% for VYM. Worst drawdown: DIVY -18.3% vs VYM -58.8%.
Should I hold both DIVY and VYM?
DIVY and VYM have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between DIVY and VYM?
DIVY and VYM share 31 common holdings with a 10.0% weight overlap. Combined, they hold 563 unique securities.
Which pays a higher dividend, DIVY or VYM?
DIVY yields 3.11% while VYM yields 2.86%, so DIVY currently pays the higher dividend yield.
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