GAB vs VYM
Gabelli Equity Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. GAB offers more diversification with 655 holdings.
Side-by-Side Comparison
| Metric | GAB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.50% | 0.04% | |
| AUM | $2.4B | $79.0B | |
| Dividend Yield | 10.10% | 2.86% | |
| Holdings | 682 | 568 | |
| YTD Return | -0.71% | +16.10% | |
| 1Y Return | +7.95% | +25.99% | |
| 3Y Return (annualized) | +12.88% | +18.29% | |
| 5Y Return (annualized) | +7.20% | +12.35% | |
| Volatility (annualized) | 20.1% | 14.6% | |
| Max Drawdown | -83.0% | -58.8% | |
| Fund Family | Gabelli Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 21, 1986 | Nov 10, 2006 |
GAB vs VYM Performance
Gabelli Equity Trust (GAB) is a ETF from Gabelli Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year GAB returned +7.95% while VYM returned +25.99%. Year to date, GAB is down 0.71% versus a gain of 16.10% for VYM.
Over three years, GAB compounded at +12.88% per year against +18.29% for VYM; over five years the annualized figures are +7.20% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.08% annualized vs +0.54%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GAB has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 14.6% 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 -83.0% for GAB 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
GAB charges 1.50% per year while VYM charges 0.04%. On a $10,000 position that is $150 vs $4 annually, a gap of $146 per year that compounds over a long holding period. On income, GAB currently yields 10.10% against 2.86% for VYM.
Holdings Overlap
GAB and VYM share 149 holdings out of 1064 unique holdings combined, representing a 18.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GAB or VYM?
GAB has an expense ratio of 1.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $146 per year of difference.
Which performed better, GAB or VYM?
Over the past year GAB returned +7.95% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), GAB annualized +0.54% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, GAB or VYM?
GAB has been the more volatile fund at 20.1% annualized versus 14.6% for VYM. Worst drawdown: GAB -83.0% vs VYM -58.8%.
Should I hold both GAB and VYM?
GAB and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GAB and VYM?
GAB and VYM share 149 common holdings with a 18.8% weight overlap. Combined, they hold 1064 unique securities.
Which pays a higher dividend, GAB or VYM?
GAB yields 10.10% while VYM yields 2.86%, so GAB currently pays the higher dividend yield.
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