ESN vs VYM
Essential 40 Stock ETF vs Vanguard High Dividend Yield ETF
Which is better, ESN or VYM?
ESN has been ahead.
VYM has a lower expense ratio. ESN led over 1Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 32.6%.
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 | ESN | VYM |
|---|---|---|
| Expense Ratio | 0.70% | 0.04%Best |
| AUM | $339M | $81.6B |
| Dividend Yield | 0.76% | 2.22% |
| Holdings | 44 | 613 |
| YTD Return | +20.27%Best | +11.47% |
| 1Y Return | +22.82%Best | +15.94% |
| 3Y Return (annualized) | - | +18.03% |
| 5Y Return (annualized) | - | +12.35% |
| Volatility (annualized) | 10.6%Best | 10.9% |
| Max Drawdown | -13.6%Best | -14.5% |
| $10,000 over 1.9 years | $13,706Best | $12,793 |
| Top 10 Weight | 32.6% | 26.1%Best |
| Fund Family | KKM Financial | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Jun 11, 2024 | Nov 10, 2006 |
Volatility and max drawdown, and the $10,000 over 1.9 years row, are measured over the window both funds cover: Oct 21, 2024 to Sep 21, 2026 (1.9 years).
ESN 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 1.9 years both funds cover.
ESN vs VYM Performance
Essential 40 Stock ETF (ESN) is an ETF from KKM Financial and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year ESN returned +22.82% while VYM returned +15.94%. Year to date, ESN is up 20.27% versus a gain of 11.47% 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 10.9% compared with 10.6% for ESN. 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 -13.6% for ESN and -14.5% 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESN charges 0.70% per year while VYM charges 0.04%. On a $10,000 position that is $70 vs $4 annually, a gap of $66 per year that compounds over a long holding period. On income, ESN currently yields 0.76% against 2.22% for VYM.
Holdings Overlap
57.9% of ESN's money is in holdings VYM also owns. 20.1% of VYM's money is in holdings ESN also owns.
The two portfolios partly overlap.
25 positions in common, counted across the 41 positions we hold weights for in ESN and 557 in VYM, against full books of 44 and 613.
What only one of them owns
Our book lists 503 positions for VYM that do not appear in our book for ESN (77.0% of the fund), and 14 for ESN that do not appear in VYM (37.0%).
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 ESN | Weight in VYM | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 2.41% | 3.82% | 1.41% |
| XOMExxon Mobil Corp. | 2.82% | 2.63% | 0.19% |
| JNJJohnson & Johnson - Common | 2.82% | 2.51% | 0.31% |
| MPCMarathon Petroleum Corp | 4.63% | 0.38% | 4.25% |
| UNHUnitedhealth Group Incorporated | 2.51% | 1.52% | 0.99% |
| VZVerizon Communic | 2.72% | 0.80% | 1.92% |
| CVSCvs Corp | 2.66% | 0.54% | 2.12% |
| HDHome Depot Inc/The | 1.85% | 1.34% | 0.51% |
| PFEPfizer Inc | 2.48% | 0.58% | 1.90% |
| CBChubb Ltd Common Stock Usd 24.15 | 2.41% | 0.50% | 1.91% |
57.9% of ESN 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, ESN or VYM?
ESN has an expense ratio of 0.70% while VYM charges 0.04%. VYM is the cheaper option, by $66 a year on a $10,000 investment.
Which performed better, ESN or VYM?
Over the past year ESN returned +22.82% vs +15.94% for VYM, so ESN leads on 1-year performance. Over the longest common window we track (2 years), ESN annualized +18.05% vs +13.84% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ESN or VYM?
VYM has been the more volatile fund at 10.9% annualized versus 10.6% for ESN. Worst drawdown: ESN -13.6% vs VYM -14.5%.
Should I hold both ESN and VYM?
ESN and VYM have a monthly-return correlation of 0.89, 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 ESN and VYM?
57.9% of ESN's money is in holdings VYM also owns. 20.1% of VYM's is in holdings ESN also owns. They hold 25 positions in common, counted across the 41 positions we hold weights for in ESN and 557 in VYM.
Which pays a higher dividend, ESN or VYM?
ESN yields 0.76% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than ESN?
VYM has a lower expense ratio. ESN led over 1Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 32.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.