HCOW vs VYM

HCOW vs VYM

Which is better, HCOW or VYM?

VYM has been ahead.

VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 32.5%.

Lower Fees: VYMHigher Returns: VYMLess Concentrated: VYM

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricHCOWVYM
Expense Ratio0.65%0.04%Best
AUM$18M$81.6B
Dividend Yield12.01%2.22%
Holdings175613
YTD Return+10.88%+12.87%Best
1Y Return+15.54%+17.25%Best
3Y Return (annualized)+11.06%+17.66%Best
5Y Return (annualized)-+11.98%
Volatility (annualized)14.5%10.7%Best
Max Drawdown-24.1%-14.5%Best
$10,000 over 3 years$13,698$16,418Best
Top 10 Weight32.5%26.1%Best
Fund FamilyAmplify ETFsVanguard (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionSep 20, 2023Nov 10, 2006

Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Sep 20, 2023 to Sep 15, 2026 (3 years).

HCOW vs VYM growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3 years both funds cover.

HCOW vs VYM Performance

Amplify COWS Covered Call ETF (HCOW) is an ETF from Amplify ETFs and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year HCOW returned +15.54% while VYM returned +17.25%. Year to date, HCOW is up 10.88% versus a gain of 12.87% for VYM.

Over three years, HCOW compounded at +11.06% per year against +17.66% for VYM.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

HCOW has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 10.7% 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 -24.1% for HCOW and -14.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

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 12.01% against 2.22% for VYM.

Holdings Overlap

HCOW already in VYM50.2%
VYM already in HCOW2.6%

50.2% of HCOW's money is in holdings VYM also owns. 2.6% of VYM's money is in holdings HCOW also owns.

The two portfolios partly overlap.

22 positions in common, counted across the 42 positions we hold weights for in HCOW and 557 in VYM, against full books of 175 and 613.

What only one of them owns

Our book lists 506 positions for VYM that do not appear in our book for HCOW (94.4% of the fund), and 20 for HCOW that do not appear in VYM (50.3%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in HCOWWeight in VYMDifference
SSNCSs&C Technologies Holdings Inc.3.06%0.06%3.00%
OSKOshkosh Corp.3.07%0.04%3.03%
OCOwens Corning3.03%0.04%2.99%
HASHasbro Inc.2.89%0.05%2.84%
WSMWilliams-sonoma Inc2.79%0.11%2.68%
AVYAvery Dennison Corp.2.82%0.05%2.77%
FDXFedex Corp2.59%0.27%2.32%
TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#5855582.46%0.34%2.12%
EQTEQT Corp.2.60%0.13%2.47%
RRCRange Resources Corp2.67%0.04%2.63%

50.2% of HCOW is already inside VYM.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

HCOWVYM

Free for up to 10 holdings. No account needed.

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, by $61 a year on a $10,000 investment.

Which performed better, HCOW or VYM?

Over the past year HCOW returned +15.54% vs +17.25% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, HCOW or VYM?

HCOW has been the more volatile fund at 14.5% annualized versus 10.7% for VYM. Worst drawdown: HCOW -24.1% vs VYM -14.5%.

Should I hold both HCOW and VYM?

HCOW and VYM have a monthly-return correlation of 0.86, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between HCOW and VYM?

50.2% of HCOW's money is in holdings VYM also owns. 2.6% of VYM's is in holdings HCOW also owns. They hold 22 positions in common, counted across the 42 positions we hold weights for in HCOW and 557 in VYM.

Which pays a higher dividend, HCOW or VYM?

HCOW yields 12.01% while VYM yields 2.22%, so HCOW currently pays the higher dividend yield.

Is VYM better than HCOW?

VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 32.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.