ERTH vs VYM
Invesco MSCI Sustainable Future 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 616 holdings.
Side-by-Side Comparison
| Metric | ERTH | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.66% | 0.04% | |
| AUM | $138M | $81.6B | |
| Dividend Yield | 1.96% | 2.24% | |
| Holdings | 182 | 616 | |
| YTD Return | -0.54% | +15.84% | |
| 1Y Return | +6.23% | +23.95% | |
| 3Y Return (annualized) | +1.83% | +19.02% | |
| 5Y Return (annualized) | -4.93% | +12.19% | |
| Volatility (annualized) | 22.7% | 14.6% | |
| Max Drawdown | -64.5% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 24, 2006 | Nov 10, 2006 |
ERTH vs VYM Performance
Invesco MSCI Sustainable Future ETF (ERTH) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ERTH returned +6.23% while VYM returned +23.95%. Year to date, ERTH is down 0.54% versus a gain of 15.84% for VYM.
Over three years, ERTH compounded at +1.83% per year against +19.02% for VYM; over five years the annualized figures are -4.93% and +12.19% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +4.37%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ERTH has been the more volatile fund, with annualized monthly volatility of 22.7% 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 -64.5% for ERTH 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ERTH charges 0.66% per year while VYM charges 0.04%. On a $10,000 position that is $66 vs $4 annually, a gap of $62 per year that compounds over a long holding period. On income, ERTH currently yields 1.96% against 2.24% for VYM.
Holdings Overlap
ERTH and VYM share 3 holdings out of 773 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ERTH or VYM?
ERTH has an expense ratio of 0.66% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, ERTH or VYM?
Over the past year ERTH returned +6.23% vs +23.95% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), ERTH annualized +4.37% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, ERTH or VYM?
ERTH has been the more volatile fund at 22.7% annualized versus 14.6% for VYM. Worst drawdown: ERTH -64.5% vs VYM -58.8%.
Should I hold both ERTH and VYM?
ERTH and VYM have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ERTH and VYM?
ERTH and VYM share 3 common holdings with a 0.1% weight overlap. Combined, they hold 773 unique securities.
Which pays a higher dividend, ERTH or VYM?
ERTH yields 1.96% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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