GMMF vs VYM
iShares Government Money Market ETF 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 558 holdings.
Side-by-Side Comparison
| Metric | GMMF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.04% | |
| AUM | $186M | $79.0B | |
| Dividend Yield | 3.86% | 2.86% | |
| Holdings | 152 | 568 | |
| YTD Return | +1.98% | +16.53% | |
| 1Y Return | +3.58% | +25.03% | |
| 3Y Return (annualized) | - | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 0.6% | 14.6% | |
| Max Drawdown | -0.3% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Money Market | Equity | |
| Inception | Feb 4, 2025 | Nov 10, 2006 |
GMMF vs VYM Performance
iShares Government Money Market ETF (GMMF) 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 GMMF returned +3.58% while VYM returned +25.03%. Year to date, GMMF is up 1.98% versus a gain of 16.53% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 0.6% for GMMF. 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 -0.3% for GMMF 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 -0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GMMF charges 0.20% per year while VYM charges 0.04%. On a $10,000 position that is $20 vs $4 annually, a gap of $16 per year that compounds over a long holding period. On income, GMMF currently yields 3.86% against 2.86% for VYM.
Holdings Overlap
GMMF and VYM share 0 holdings out of 574 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GMMF or VYM?
GMMF has an expense ratio of 0.20% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, GMMF or VYM?
Over the past year GMMF returned +3.58% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), GMMF annualized +3.78% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, GMMF or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 0.6% for GMMF. Worst drawdown: GMMF -0.3% vs VYM -58.8%.
Should I hold both GMMF and VYM?
GMMF and VYM have a monthly-return correlation of -0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GMMF and VYM?
GMMF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 574 unique securities.
Which pays a higher dividend, GMMF or VYM?
GMMF yields 3.86% while VYM yields 2.86%, so GMMF currently pays the higher dividend yield.
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