GRX vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricGRXVYMWinner
Expense Ratio3.00%0.04%
AUM$226M$79.0B
Dividend Yield6.46%2.86%
Holdings194568
YTD Return+6.93%+16.10%
1Y Return+18.40%+25.99%
3Y Return (annualized)+7.37%+18.29%
5Y Return (annualized)+0.50%+12.35%
Volatility (annualized)18.6%14.6%
Max Drawdown-65.0%-58.8%
Fund FamilyGabelli FundsVanguard (US)
CategoryEquityEquity
InceptionJun 19, 2007Nov 10, 2006

GRX vs VYM Performance

The Gabelli Healthcare & Wellness RX Trust (GRX) is a ETF from Gabelli Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year GRX returned +18.40% while VYM returned +25.99%. Year to date, GRX is up 6.93% versus a gain of 16.10% for VYM.

Over three years, GRX compounded at +7.37% per year against +18.29% for VYM; over five years the annualized figures are +0.50% and +12.35% respectively. Across the full 19-year window we track, VYM has the edge at +7.08% annualized vs +3.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

GRX has been the more volatile fund, with annualized monthly volatility of 18.6% 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 -65.0% for GRX 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

GRX charges 3.00% per year while VYM charges 0.04%. On a $10,000 position that is $300 vs $4 annually, a gap of $296 per year that compounds over a long holding period. On income, GRX currently yields 6.46% against 2.86% for VYM.

Holdings Overlap

12.3%overlap

GRX and VYM share 26 holdings out of 707 unique holdings combined, representing a 12.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in GRXWeight in VYMDifference
ABBV3.51%1.80%1.71%
MRK3.57%1.37%2.20%
JNJ1.60%2.62%1.02%
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Frequently Asked Questions

Which is cheaper, GRX or VYM?

GRX has an expense ratio of 3.00% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $296 per year of difference.

Which performed better, GRX or VYM?

Over the past year GRX returned +18.40% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), GRX annualized +3.07% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, GRX or VYM?

GRX has been the more volatile fund at 18.6% annualized versus 14.6% for VYM. Worst drawdown: GRX -65.0% vs VYM -58.8%.

Should I hold both GRX and VYM?

GRX and VYM have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between GRX and VYM?

GRX and VYM share 26 common holdings with a 12.3% weight overlap. Combined, they hold 707 unique securities.

Which pays a higher dividend, GRX or VYM?

GRX yields 6.46% while VYM yields 2.86%, so GRX currently pays the higher dividend yield.

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