HECA vs VYM
Hedgeye Capital Allocation ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | HECA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.81% | 0.04% | |
| AUM | $288M | $81.6B | |
| Dividend Yield | 2.04% | 2.24% | |
| Holdings | 51 | 616 | |
| YTD Return | +0.57% | +14.84% | |
| 1Y Return | +10.73% | +20.88% | |
| 3Y Return (annualized) | - | +18.34% | |
| 5Y Return (annualized) | - | +12.04% | |
| Volatility (annualized) | 12.5% | 14.6% | |
| Max Drawdown | -12.8% | -58.8% | |
| Fund Family | Hedgeye Asset Management | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jun 30, 2025 | Nov 10, 2006 |
HECA vs VYM Performance
Hedgeye Capital Allocation ETF (HECA) is a ETF from Hedgeye Asset Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HECA returned +10.73% while VYM returned +20.88%. Year to date, HECA is up 0.57% versus a gain of 14.84% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 12.5% for HECA. 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 -12.8% for HECA 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HECA charges 0.81% per year while VYM charges 0.04%. On a $10,000 position that is $81 vs $4 annually, a gap of $77 per year that compounds over a long holding period. On income, HECA currently yields 2.04% against 2.24% for VYM.
Holdings Overlap
HECA and VYM share 16 holdings out of 635 unique holdings combined, representing a 15.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HECA or VYM?
HECA has an expense ratio of 0.81% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, HECA or VYM?
Over the past year HECA returned +10.73% vs +20.88% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), HECA annualized +11.85% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, HECA or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.5% for HECA. Worst drawdown: HECA -12.8% vs VYM -58.8%.
Should I hold both HECA and VYM?
HECA and VYM have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HECA and VYM?
HECA and VYM share 16 common holdings with a 15.8% weight overlap. Combined, they hold 635 unique securities.
Which pays a higher dividend, HECA or VYM?
HECA yields 2.04% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.