HEQT vs VYM
Simplify Hedged Equity 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 568 holdings.
Side-by-Side Comparison
| Metric | HEQT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.43% | 0.04% | |
| AUM | $295M | $79.0B | |
| Dividend Yield | 1.19% | 2.86% | |
| Holdings | 11 | 568 | |
| YTD Return | +8.79% | +16.78% | |
| 1Y Return | +14.29% | +24.43% | |
| 3Y Return (annualized) | +13.93% | +18.60% | |
| 5Y Return (annualized) | - | +12.30% | |
| Volatility (annualized) | 7.9% | 14.6% | |
| Max Drawdown | -11.5% | -58.8% | |
| Fund Family | Simplify Exchange Traded Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 1, 2021 | Nov 10, 2006 |
HEQT vs VYM Performance
Simplify Hedged Equity ETF (HEQT) is a ETF from Simplify Exchange Traded Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HEQT returned +14.29% while VYM returned +24.43%. Year to date, HEQT is up 8.79% versus a gain of 16.78% for VYM.
Over three years, HEQT compounded at +13.93% per year against +18.60% for VYM. Across the full 5-year window we track, HEQT has the edge at +9.58% annualized vs +7.11%. 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 7.9% for HEQT. 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 -11.5% for HEQT 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 usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HEQT charges 0.43% per year while VYM charges 0.04%. On a $10,000 position that is $43 vs $4 annually, a gap of $39 per year that compounds over a long holding period. On income, HEQT currently yields 1.19% against 2.86% for VYM.
Holdings Overlap
HEQT and VYM share 0 holdings out of 559 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HEQT or VYM?
HEQT has an expense ratio of 0.43% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $39 per year of difference.
Which performed better, HEQT or VYM?
Over the past year HEQT returned +14.29% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), HEQT annualized +9.58% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, HEQT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.9% for HEQT. Worst drawdown: HEQT -11.5% vs VYM -58.8%.
Should I hold both HEQT and VYM?
HEQT 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 HEQT and VYM?
HEQT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, HEQT or VYM?
HEQT yields 1.19% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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