ESML vs VYM
iShares ESG Aware MSCI USA Small-Cap ETF vs Vanguard High Dividend Yield ETF
Which is better, ESML or VYM?
Small Cap Blend against Large Cap Value.
VYM has a lower expense ratio. ESML led over 1Y, VYM over 3Y, 5Y and the full window. ESML is less concentrated, with 4.5% of the fund in its ten largest positions against 26.1%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | ESML | VYM |
|---|---|---|
| Expense Ratio | 0.17% | 0.04%Best |
| AUM | $2.8B | $81.6B |
| Dividend Yield | 0.91% | 2.22% |
| Holdings | 913 | 613 |
| YTD Return | +14.07%Best | +11.35% |
| 1Y Return | +16.60%Best | +15.34% |
| 3Y Return (annualized) | +16.53% | +17.22%Best |
| 5Y Return (annualized) | +7.65% | +12.30%Best |
| Volatility (annualized) | 21.3% | 15.2%Best |
| Max Drawdown | -42.0% | -35.7%Best |
| $10,000 over 5 years | $14,457 | $17,861Best |
| Top 10 Weight | 4.5%Best | 26.1% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Value |
| Inception | Apr 10, 2018 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Apr 12, 2018 to Sep 18, 2026 (8.4 years).
ESML vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8.4 years both funds cover.
ESML vs VYM Performance
iShares ESG Aware MSCI USA Small-Cap ETF (ESML) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year ESML returned +16.60% while VYM returned +15.34%. Year to date, ESML is up 14.07% versus a gain of 11.35% for VYM.
Over three years, ESML compounded at +16.53% per year against +17.22% for VYM; over five years the annualized figures are +7.65% and +12.30% respectively. Across the full 8-year window we track, VYM has the edge at +10.04% annualized vs +9.80%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESML has been the more volatile fund, with annualized monthly volatility of 21.3% compared with 15.2% 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 -42.0% for ESML and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESML charges 0.17% per year while VYM charges 0.04%. On a $10,000 position that is $17 vs $4 annually, a gap of $13 per year that compounds over a long holding period. On income, ESML currently yields 0.91% against 2.22% for VYM.
Holdings Overlap
26.7% of ESML's money is in holdings VYM also owns. 5.3% of VYM's money is in holdings ESML also owns.
ESML and VYM share little of their money.
197 positions in common, counted across the 854 positions we hold weights for in ESML and 557 in VYM, against full books of 913 and 613.
What only one of them owns
Our book lists 335 positions for VYM that do not appear in our book for ESML (91.8% of the fund), and 639 for ESML that do not appear in VYM (67.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in ESML | Weight in VYM | Difference |
|---|---|---|---|
| AIZAssurant, Inc. | 0.62% | 0.06% | 0.56% |
| OVVOvintiv Inc. | 0.46% | 0.07% | 0.39% |
| OGSOne Gas Inc | 0.39% | 0.02% | 0.37% |
| UNMUnum Group | 0.31% | 0.06% | 0.25% |
| EQHEquitable Holdings Inc. | 0.31% | 0.05% | 0.26% |
| IVZInvesco PLC | 0.32% | 0.04% | 0.28% |
| EWBCEast West Bancorp, Inc. | 0.29% | 0.07% | 0.22% |
| FDSFactset Research Systems Inc. | 0.31% | 0.04% | 0.27% |
| RGAReinsurance Group of America, Incorporated | 0.28% | 0.06% | 0.22% |
| VTRSViatris Inc. | 0.26% | 0.08% | 0.18% |
26.7% of ESML is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, ESML or VYM?
ESML has an expense ratio of 0.17% while VYM charges 0.04%. VYM is the cheaper option, by $13 a year on a $10,000 investment.
Which performed better, ESML or VYM?
Over the past year ESML returned +16.60% vs +15.34% for VYM, so ESML leads on 1-year performance. Over the longest common window we track (8 years), ESML annualized +9.80% vs +10.04% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ESML or VYM?
ESML has been the more volatile fund at 21.3% annualized versus 15.2% for VYM. Worst drawdown: ESML -42.0% vs VYM -35.7%.
Should I hold both ESML and VYM?
ESML and VYM have a monthly-return correlation of 0.88, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between ESML and VYM?
26.7% of ESML's money is in holdings VYM also owns. 5.3% of VYM's is in holdings ESML also owns. They hold 197 positions in common, counted across the 854 positions we hold weights for in ESML and 557 in VYM.
Which pays a higher dividend, ESML or VYM?
ESML yields 0.91% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than ESML?
VYM has a lower expense ratio. ESML led over 1Y, VYM over 3Y, 5Y and the full window. ESML is less concentrated, with 4.5% of the fund in its ten largest positions against 26.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.