ESMV vs VYM

ESMV vs VYM

Which is better, ESMV or VYM?

Large Cap Blend against Large Cap Value.

VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. ESMV is less concentrated, with 15.2% of the fund in its ten largest positions against 26.1%.

Lower Fees: VYMHigher Returns: VYMLess Concentrated: ESMV

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

MetricESMVVYM
Expense Ratio0.18%0.04%Best
AUM$8M$81.6B
Dividend Yield1.44%2.22%
Holdings160613
YTD Return+10.07%+13.08%Best
1Y Return+10.56%+17.46%Best
3Y Return (annualized)+11.66%+17.73%Best
5Y Return (annualized)-+12.22%
Volatility (annualized)13.0%Best13.8%
Max Drawdown-19.8%-15.8%Best
$10,000 over 4.9 years$13,465$17,010Best
Top 10 Weight15.2%Best26.1%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Value
InceptionNov 2, 2021Nov 10, 2006

Volatility and max drawdown, and the $10,000 over 4.9 years row, are measured over the window both funds cover: Nov 4, 2021 to Sep 14, 2026 (4.9 years).

ESMV 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 4.9 years both funds cover.

ESMV vs VYM Performance

iShares ESG Optimized MSCI USA Min Vol Factor ETF (ESMV) 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 ESMV returned +10.56% while VYM returned +17.46%. Year to date, ESMV is up 10.07% versus a gain of 13.08% for VYM.

Over three years, ESMV compounded at +11.66% per year against +17.73% for VYM.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 13.8% compared with 13.0% for ESMV. 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 -19.8% for ESMV and -15.8% 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 0.87. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

ESMV charges 0.18% per year while VYM charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, ESMV currently yields 1.44% against 2.22% for VYM.

Holdings Overlap

ESMV already in VYM47.8%
VYM already in ESMV45.0%

47.8% of ESMV's money is in holdings VYM also owns. 45.0% of VYM's money is in holdings ESMV also owns.

The two portfolios partly overlap.

69 positions in common, counted across the 159 positions we hold weights for in ESMV and 557 in VYM, against full books of 160 and 613.

What only one of them owns

Our book lists 460 positions for VYM that do not appear in our book for ESMV (52.4% of the fund), and 84 for ESMV that do not appear in VYM (51.2%).

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

StockWeight in ESMVWeight in VYMDifference
AVGOBroadcom Inc0.93%7.35%6.42%
JNJJohnson & Johnson - Common0.96%2.51%1.55%
XOMExxon Mobil Corp.0.72%2.63%1.91%
CSCOCisco Systems Inc. - Ordinary Shares1.35%1.86%0.51%
MRKMerck & Company Inc1.45%1.31%0.14%
KOCoca Cola Co.1.35%1.38%0.03%
VZVerizon Communic1.51%0.80%0.71%
PGProcter & Gamble Company0.93%1.37%0.44%
HDHome Depot Inc/The0.95%1.34%0.39%
TXNTexas Instrument Inc1.21%1.02%0.19%

47.8% of ESMV 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.

ESMVVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, ESMV or VYM?

ESMV has an expense ratio of 0.18% while VYM charges 0.04%. VYM is the cheaper option, by $14 a year on a $10,000 investment.

Which performed better, ESMV or VYM?

Over the past year ESMV returned +10.56% vs +17.46% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, ESMV or VYM?

VYM has been the more volatile fund at 13.8% annualized versus 13.0% for ESMV. Worst drawdown: ESMV -19.8% vs VYM -15.8%.

Should I hold both ESMV and VYM?

ESMV and VYM have a monthly-return correlation of 0.87, 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 ESMV and VYM?

47.8% of ESMV's money is in holdings VYM also owns. 45.0% of VYM's is in holdings ESMV also owns. They hold 69 positions in common, counted across the 159 positions we hold weights for in ESMV and 557 in VYM.

Which pays a higher dividend, ESMV or VYM?

ESMV yields 1.44% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.

Is VYM better than ESMV?

VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. ESMV is less concentrated, with 15.2% 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.