HDGE vs VYM

HDGE vs VYM
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Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricHDGEVYMWinner
Expense Ratio3.62%0.04%
AUM$51M$81.6B
Dividend Yield3.70%2.24%
Holdings64616
YTD Return-13.31%+14.95%
1Y Return-9.13%+21.14%
3Y Return (annualized)-10.30%+18.69%
5Y Return (annualized)-8.41%+12.00%
Volatility (annualized)20.9%14.6%
Max Drawdown-94.7%-58.8%
Fund FamilyAdvisor SharesVanguard (US)
CategoryAlternativeEquity
InceptionJan 26, 2011Nov 10, 2006

HDGE vs VYM Performance

AdvisorShares Ranger Equity Bear ETF (HDGE) is a ETF from Advisor Shares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HDGE returned -9.13% while VYM returned +21.14%. Year to date, HDGE is down 13.31% versus a gain of 14.95% for VYM.

Over three years, HDGE compounded at -10.30% per year against +18.69% for VYM; over five years the annualized figures are -8.41% and +12.00% respectively. Across the full 16-year window we track, VYM has the edge at +7.01% annualized vs -16.16%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

HDGE has been the more volatile fund, with annualized monthly volatility of 20.9% 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 -94.7% for HDGE 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 -0.74. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HDGE charges 3.62% per year while VYM charges 0.04%. On a $10,000 position that is $362 vs $4 annually, a gap of $358 per year that compounds over a long holding period. On income, HDGE currently yields 3.70% against 2.24% for VYM.

Holdings Overlap

0.0%overlap

HDGE and VYM share 14 holdings out of 651 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HDGEWeight in VYMDifference
WFC-1.36%1.05%2.41%
SYF-1.15%0.11%1.26%
OLED-1.25%0.02%1.27%
CTSHProProPro
OMFProProPro
ARESProProPro
BBWIProProPro
PAYXProProPro
DDSProProPro
OZKProProPro
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Frequently Asked Questions

Which is cheaper, HDGE or VYM?

HDGE has an expense ratio of 3.62% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $358 per year of difference.

Which performed better, HDGE or VYM?

Over the past year HDGE returned -9.13% vs +21.14% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (16 years), HDGE annualized -16.16% vs +7.01% for VYM. Past performance does not guarantee future results.

Which is riskier, HDGE or VYM?

HDGE has been the more volatile fund at 20.9% annualized versus 14.6% for VYM. Worst drawdown: HDGE -94.7% vs VYM -58.8%.

Should I hold both HDGE and VYM?

HDGE and VYM have a monthly-return correlation of -0.74, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HDGE and VYM?

HDGE and VYM share 14 common holdings with a 0.0% weight overlap. Combined, they hold 651 unique securities.

Which pays a higher dividend, HDGE or VYM?

HDGE yields 3.70% while VYM yields 2.24%, so HDGE currently pays the higher dividend yield.

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