GUG vs VYM
Guggenheim Active Allocation Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. GUG offers more diversification with 777 holdings.
Side-by-Side Comparison
| Metric | GUG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.22% | 0.04% | |
| AUM | $539M | $79.0B | |
| Dividend Yield | 8.61% | 2.86% | |
| Holdings | 1,262 | 568 | |
| YTD Return | +6.20% | +16.53% | |
| 1Y Return | +8.27% | +25.03% | |
| 3Y Return (annualized) | +13.07% | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 15.5% | 14.6% | |
| Max Drawdown | -32.8% | -58.8% | |
| Fund Family | Guggenheim Investments | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Nov 23, 2021 | Nov 10, 2006 |
GUG vs VYM Performance
Guggenheim Active Allocation Fund (GUG) is a ETF from Guggenheim Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year GUG returned +8.27% while VYM returned +25.03%. Year to date, GUG is up 6.20% versus a gain of 16.53% for VYM.
Over three years, GUG compounded at +13.07% per year against +18.54% for VYM. Across the full 5-year window we track, VYM has the edge at +7.10% annualized vs +3.66%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GUG has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -32.8% for GUG 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
GUG charges 2.22% per year while VYM charges 0.04%. On a $10,000 position that is $222 vs $4 annually, a gap of $218 per year that compounds over a long holding period. On income, GUG currently yields 8.61% against 2.86% for VYM.
Holdings Overlap
GUG and VYM share 50 holdings out of 1285 unique holdings combined, representing a 3.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GUG or VYM?
GUG has an expense ratio of 2.22% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $218 per year of difference.
Which performed better, GUG or VYM?
Over the past year GUG returned +8.27% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), GUG annualized +3.66% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, GUG or VYM?
GUG has been the more volatile fund at 15.5% annualized versus 14.6% for VYM. Worst drawdown: GUG -32.8% vs VYM -58.8%.
Should I hold both GUG and VYM?
GUG and VYM have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GUG and VYM?
GUG and VYM share 50 common holdings with a 3.9% weight overlap. Combined, they hold 1285 unique securities.
Which pays a higher dividend, GUG or VYM?
GUG yields 8.61% while VYM yields 2.86%, so GUG currently pays the higher dividend yield.
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