ESN vs VYM
Essential 40 Stock ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. ESN delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | ESN | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.04% | |
| AUM | $312M | $79.0B | |
| Dividend Yield | 0.79% | 2.86% | |
| Holdings | 43 | 568 | |
| YTD Return | +19.67% | +16.16% | |
| 1Y Return | +29.80% | +26.05% | |
| 3Y Return (annualized) | - | +18.43% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 10.8% | 14.6% | |
| Max Drawdown | -13.6% | -58.8% | |
| Fund Family | KKM Financial | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 11, 2024 | Nov 10, 2006 |
ESN vs VYM Performance
Essential 40 Stock ETF (ESN) is a ETF from KKM Financial and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ESN returned +29.80% while VYM returned +26.05%. Year to date, ESN is up 19.67% versus a gain of 16.16% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 10.8% 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 -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
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 0.79% against 2.86% for VYM.
Holdings Overlap
ESN and VYM share 23 holdings out of 575 unique holdings combined, representing a 18.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $66 per year of difference.
Which performed better, ESN or VYM?
Over the past year ESN returned +29.80% vs +26.05% for VYM, so ESN leads on 1-year performance. Over the longest common window we track (2 years), ESN annualized +18.95% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, ESN or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 10.8% for ESN. Worst drawdown: ESN -13.6% vs VYM -58.8%.
Should I hold both ESN and VYM?
ESN 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 ESN and VYM?
ESN and VYM share 23 common holdings with a 18.1% weight overlap. Combined, they hold 575 unique securities.
Which pays a higher dividend, ESN or VYM?
ESN yields 0.79% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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