HAPS vs VYM
Harbor Human Capital Factor US Small Cap ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. HAPS delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | HAPS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.61% | 0.04% | |
| AUM | $171M | $79.0B | |
| Dividend Yield | 0.47% | 2.86% | |
| Holdings | 202 | 568 | |
| YTD Return | +22.06% | +15.80% | |
| 1Y Return | +34.36% | +26.12% | |
| 3Y Return (annualized) | +13.59% | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 19.5% | 14.6% | |
| Max Drawdown | -27.4% | -58.8% | |
| Fund Family | Harbor Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 27, 2023 | Nov 10, 2006 |
HAPS vs VYM Performance
Harbor Human Capital Factor US Small Cap ETF (HAPS) is a ETF from Harbor Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HAPS returned +34.36% while VYM returned +26.12%. Year to date, HAPS is up 22.06% versus a gain of 15.80% for VYM.
Over three years, HAPS compounded at +13.59% per year against +18.25% for VYM. Across the full 3-year window we track, HAPS has the edge at +14.14% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HAPS has been the more volatile fund, with annualized monthly volatility of 19.5% 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 -27.4% for HAPS 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HAPS charges 0.61% per year while VYM charges 0.04%. On a $10,000 position that is $61 vs $4 annually, a gap of $57 per year that compounds over a long holding period. On income, HAPS currently yields 0.47% against 2.86% for VYM.
Holdings Overlap
HAPS and VYM share 45 holdings out of 708 unique holdings combined, representing a 0.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HAPS or VYM?
HAPS has an expense ratio of 0.61% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, HAPS or VYM?
Over the past year HAPS returned +34.36% vs +26.12% for VYM, so HAPS leads on 1-year performance. Over the longest common window we track (3 years), HAPS annualized +14.14% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, HAPS or VYM?
HAPS has been the more volatile fund at 19.5% annualized versus 14.6% for VYM. Worst drawdown: HAPS -27.4% vs VYM -58.8%.
Should I hold both HAPS and VYM?
HAPS and VYM have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HAPS and VYM?
HAPS and VYM share 45 common holdings with a 0.6% weight overlap. Combined, they hold 708 unique securities.
Which pays a higher dividend, HAPS or VYM?
HAPS yields 0.47% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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