HEFA vs VYM
iShares Currency Hedged MSCI EAFE ETF vs Vanguard High Dividend Yield ETF
Which is better, HEFA or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. HEFA led over 1Y, VYM over 3Y, 5Y and the full window.
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
| Metric | HEFA | VYM |
|---|---|---|
| Expense Ratio | 0.35% | 0.04%Best |
| AUM | $7.4B | $81.6B |
| Dividend Yield | 3.08% | 2.22% |
| Holdings | 786 | 613 |
| YTD Return | +11.18% | +13.91%Best |
| 1Y Return | +18.10%Best | +17.57% |
| 3Y Return (annualized) | +17.58% | +18.12%Best |
| 5Y Return (annualized) | +10.69% | +12.17%Best |
| Volatility (annualized) | 12.3%Best | 13.5% |
| Max Drawdown | -45.6% | -35.7%Best |
| $10,000 over 5 years | $16,617 | $17,758Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jan 31, 2014 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 11, 2014 to Sep 11, 2026 (12.6 years).
HEFA 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 12.6 years both funds cover.
HEFA vs VYM Performance
iShares Currency Hedged MSCI EAFE ETF (HEFA) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year HEFA returned +18.10% while VYM returned +17.57%. Year to date, HEFA is up 11.18% versus a gain of 13.91% for VYM.
Over three years, HEFA compounded at +17.58% per year against +18.12% for VYM; over five years the annualized figures are +10.69% and +12.17% respectively. Across the full 13-year window we track, VYM has the edge at +9.54% annualized vs +9.52%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.5% compared with 12.3% for HEFA. 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 -45.6% for HEFA and -35.7% 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HEFA charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, HEFA currently yields 3.08% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 2 holdings in HEFA and 603 in VYM, totalling 101.4% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 2 positions we hold weights for in HEFA and 603 in VYM, against full books of 786 and 613.
You are not choosing between two funds in isolation.
Whichever of HEFA and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HEFA or VYM?
HEFA has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, HEFA or VYM?
Over the past year HEFA returned +18.10% vs +17.57% for VYM, so HEFA leads on 1-year performance. Over the longest common window we track (13 years), HEFA annualized +9.52% vs +9.54% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HEFA or VYM?
VYM has been the more volatile fund at 13.5% annualized versus 12.3% for HEFA. Worst drawdown: HEFA -45.6% vs VYM -35.7%.
Should I hold both HEFA and VYM?
HEFA and VYM have a monthly-return correlation of 0.82, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, HEFA or VYM?
HEFA yields 3.08% while VYM yields 2.22%, so HEFA currently pays the higher dividend yield.
Is VYM better than HEFA?
VYM has a lower expense ratio. HEFA led over 1Y, VYM over 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.