GDL vs VYM
The GDL Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | GDL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.70% | 0.04% | |
| AUM | $119M | $81.6B | |
| Dividend Yield | 4.50% | 2.24% | |
| Holdings | 129 | 616 | |
| YTD Return | +3.25% | +16.42% | |
| 1Y Return | +6.77% | +24.22% | |
| 3Y Return (annualized) | +8.27% | +19.03% | |
| 5Y Return (annualized) | +4.59% | +12.21% | |
| Volatility (annualized) | 8.5% | 14.6% | |
| Max Drawdown | -72.5% | -58.8% | |
| Fund Family | Gabelli Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 25, 2007 | Nov 10, 2006 |
GDL vs VYM Performance
The GDL Fund (GDL) is a ETF from Gabelli Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year GDL returned +6.77% while VYM returned +24.22%. Year to date, GDL is up 3.25% versus a gain of 16.42% for VYM.
Over three years, GDL compounded at +8.27% per year against +19.03% for VYM; over five years the annualized figures are +4.59% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs -2.76%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 8.5% for GDL. 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 -72.5% for GDL 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GDL charges 2.70% per year while VYM charges 0.04%. On a $10,000 position that is $270 vs $4 annually, a gap of $266 per year that compounds over a long holding period. On income, GDL currently yields 4.50% against 2.24% for VYM.
Holdings Overlap
GDL and VYM share 12 holdings out of 706 unique holdings combined, representing a 0.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GDL or VYM?
GDL has an expense ratio of 2.70% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $266 per year of difference.
Which performed better, GDL or VYM?
Over the past year GDL returned +6.77% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), GDL annualized -2.76% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, GDL or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.5% for GDL. Worst drawdown: GDL -72.5% vs VYM -58.8%.
Should I hold both GDL and VYM?
GDL and VYM have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GDL and VYM?
GDL and VYM share 12 common holdings with a 0.9% weight overlap. Combined, they hold 706 unique securities.
Which pays a higher dividend, GDL or VYM?
GDL yields 4.50% while VYM yields 2.24%, so GDL currently pays the higher dividend yield.
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