GHYG vs VYM

GHYG vs VYM
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Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. GHYG offers more diversification with 1,730 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: GHYG

Side-by-Side Comparison

MetricGHYGVYMWinner
Expense Ratio0.40%0.04%
AUM$198M$81.6B
Dividend Yield6.29%2.24%
Holdings1,730616
YTD Return-1.79%+16.42%
1Y Return-0.01%+24.22%
3Y Return (annualized)+7.22%+19.03%
5Y Return (annualized)+2.71%+12.21%
Volatility (annualized)8.0%14.6%
Max Drawdown-52.4%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionApr 3, 2012Nov 10, 2006

GHYG vs VYM Performance

iShares US & International High Yield Corp Bond ETF (GHYG) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year GHYG returned -0.01% while VYM returned +24.22%. Year to date, GHYG is down 1.79% versus a gain of 16.42% for VYM.

Over three years, GHYG compounded at +7.22% per year against +19.03% for VYM; over five years the annualized figures are +2.71% and +12.21% respectively. Across the full 14-year window we track, VYM has the edge at +7.10% annualized vs +4.23%. 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 8.0% for GHYG. 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 -52.4% for GHYG 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

GHYG charges 0.40% per year while VYM charges 0.04%. On a $10,000 position that is $40 vs $4 annually, a gap of $36 per year that compounds over a long holding period. On income, GHYG currently yields 6.29% against 2.24% for VYM.

Holdings Overlap

0.0%overlap

GHYG and VYM share 2 holdings out of 1609 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in GHYGWeight in VYMDifference
MTCHII 5 12/15/27 140.03%0.04%0.01%
PFSI 4.25 02/15/29 10.04%0.01%0.03%

Frequently Asked Questions

Which is cheaper, GHYG or VYM?

GHYG has an expense ratio of 0.40% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $36 per year of difference.

Which performed better, GHYG or VYM?

Over the past year GHYG returned -0.01% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), GHYG annualized +4.23% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, GHYG or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 8.0% for GHYG. Worst drawdown: GHYG -52.4% vs VYM -58.8%.

Should I hold both GHYG and VYM?

GHYG and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between GHYG and VYM?

GHYG and VYM share 2 common holdings with a 0.0% weight overlap. Combined, they hold 1609 unique securities.

Which pays a higher dividend, GHYG or VYM?

GHYG yields 6.29% while VYM yields 2.24%, so GHYG currently pays the higher dividend yield.

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