ETY vs VYM
Eaton Vance Tax-Managed Diversified Equity Income Fund vs Vanguard High Dividend Yield ETF
Which is better, ETY or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 48.9%.
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 | ETY | VYM |
|---|---|---|
| Expense Ratio | 1.06% | 0.04%Best |
| AUM | $1.8B | $81.6B |
| Dividend Yield | 7.64% | 2.24% |
| Holdings | 61 | 613 |
| YTD Return | -0.26% | +14.82%Best |
| 1Y Return | -2.17% | +20.84%Best |
| 3Y Return (annualized) | +14.54% | +18.64%Best |
| 5Y Return (annualized) | +8.25% | +12.28%Best |
| Volatility (annualized) | 17.2% | 14.5%Best |
| Max Drawdown | -64.6% | -58.8%Best |
| $10,000 over 5 years | $14,864 | $17,845Best |
| Top 10 Weight | 48.9% | 25.9%Best |
| Fund Family | Eaton Vance | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Nov 27, 2006 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 28, 2006 to Sep 4, 2026 (19.8 years).
ETY 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 19.8 years both funds cover.
ETY vs VYM Performance
Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY) is an ETF from Eaton Vance and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year ETY returned -2.17% while VYM returned +20.84%. Year to date, ETY is down 0.26% versus a gain of 14.82% for VYM.
Over three years, ETY compounded at +14.54% per year against +18.64% for VYM; over five years the annualized figures are +8.25% and +12.28% respectively. Across the full 20-year window we track, VYM has the edge at +7.06% annualized vs +0.62%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ETY has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 14.5% 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 -64.6% for ETY and -58.8% 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ETY charges 1.06% per year while VYM charges 0.04%. On a $10,000 position that is $106 vs $4 annually, a gap of $102 per year that compounds over a long holding period. On income, ETY currently yields 7.64% against 2.24% for VYM.
Holdings Overlap
28.2% of ETY's money is in holdings VYM also owns. 20.4% of VYM's money is in holdings ETY also owns.
ETY and VYM share little of their money.
The two holdings books were reported 123 days apart, ETY as of Feb 27, 2026 and VYM as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
16 positions in common, counted across the 49 positions we hold weights for in ETY and 603 in VYM, against full books of 61 and 613.
What only one of them owns
Our book lists 554 positions for VYM that do not appear in our book for ETY (77.0% of the fund), and 29 for ETY that do not appear in VYM (67.0%).
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 ETY | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 4.00% | 7.29% | 3.29% |
| JPMJpmorgan Chase | 2.93% | 3.38% | 0.45% |
| JNJJohnson & Johnson - Common | 1.80% | 2.54% | 0.74% |
| KOCoca Cola Co. | 2.80% | 1.31% | 1.49% |
| ABBVAbbvie Inc. | 2.19% | 1.85% | 0.34% |
| COPConocophillips Common Stock USD 0.01 | 2.26% | 0.53% | 1.73% |
| ADIAnalog Devices, Inc. | 1.90% | 0.80% | 1.10% |
| ETNEaton Corp Plc | 1.84% | 0.69% | 1.15% |
| LINLinde Plc Ordinary Shares | 1.44% | 0.99% | 0.45% |
| CARRCarrier Global Corp Common Stock Usd.01 | 1.18% | 0.24% | 0.94% |
28.2% of ETY 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.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, ETY or VYM?
ETY has an expense ratio of 1.06% while VYM charges 0.04%. VYM is the cheaper option, by $102 a year on a $10,000 investment.
Which performed better, ETY or VYM?
Over the past year ETY returned -2.17% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), ETY annualized +0.62% vs +7.06% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ETY or VYM?
ETY has been the more volatile fund at 17.2% annualized versus 14.5% for VYM. Worst drawdown: ETY -64.6% vs VYM -58.8%.
Should I hold both ETY and VYM?
ETY and VYM have a monthly-return correlation of 0.78, 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 ETY and VYM?
28.2% of ETY's money is in holdings VYM also owns. 20.4% of VYM's is in holdings ETY also owns. They hold 16 positions in common, counted across the 49 positions we hold weights for in ETY and 603 in VYM.
Which pays a higher dividend, ETY or VYM?
ETY yields 7.64% while VYM yields 2.24%, so ETY currently pays the higher dividend yield.
Is VYM better than ETY?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 48.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.