HCOW vs VYM
Amplify COWS Covered Call ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. HCOW delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | HCOW | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.04% | |
| AUM | $18M | $81.6B | |
| Dividend Yield | 12.55% | 2.24% | |
| Holdings | 86 | 616 | |
| YTD Return | +15.56% | +15.34% | |
| 1Y Return | +24.62% | +23.24% | |
| 3Y Return (annualized) | +12.92% | +19.22% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 14.5% | 14.6% | |
| Max Drawdown | -24.1% | -58.8% | |
| Fund Family | Amplify ETFs | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2023 | Nov 10, 2006 |
HCOW vs VYM Performance
Amplify COWS Covered Call ETF (HCOW) is a ETF from Amplify ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HCOW returned +24.62% while VYM returned +23.24%. Year to date, HCOW is up 15.56% versus a gain of 15.34% for VYM.
Over three years, HCOW compounded at +12.92% per year against +19.22% for VYM. Across the full 3-year window we track, HCOW has the edge at +12.92% annualized vs +7.04%. 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 14.5% for HCOW. 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 -24.1% for HCOW 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HCOW charges 0.65% per year while VYM charges 0.04%. On a $10,000 position that is $65 vs $4 annually, a gap of $61 per year that compounds over a long holding period. On income, HCOW currently yields 12.55% against 2.24% for VYM.
Holdings Overlap
HCOW and VYM share 20 holdings out of 625 unique holdings combined, representing a 2.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HCOW or VYM?
HCOW has an expense ratio of 0.65% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $61 per year of difference.
Which performed better, HCOW or VYM?
Over the past year HCOW returned +24.62% vs +23.24% for VYM, so HCOW leads on 1-year performance. Over the longest common window we track (3 years), HCOW annualized +12.92% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, HCOW or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.5% for HCOW. Worst drawdown: HCOW -24.1% vs VYM -58.8%.
Should I hold both HCOW and VYM?
HCOW and VYM have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HCOW and VYM?
HCOW and VYM share 20 common holdings with a 2.1% weight overlap. Combined, they hold 625 unique securities.
Which pays a higher dividend, HCOW or VYM?
HCOW yields 12.55% while VYM yields 2.24%, so HCOW currently pays the higher dividend yield.
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