HERZ vs VYM
Herzfeld Caribbean Basin Fund Inc 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 | HERZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 3.45% | 0.04% | |
| AUM | - | $81.6B | |
| Dividend Yield | - | 2.24% | |
| Holdings | 29 | 616 | |
| YTD Return | -22.67% | +16.42% | |
| 1Y Return | -5.74% | +24.22% | |
| 3Y Return (annualized) | -2.84% | +19.03% | |
| 5Y Return (annualized) | -2.21% | +12.21% | |
| Volatility (annualized) | 32.5% | 14.6% | |
| Max Drawdown | -84.7% | -58.8% | |
| Fund Family | Herzfeld-Cuba | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 20, 1994 | Nov 10, 2006 |
HERZ vs VYM Performance
Herzfeld Caribbean Basin Fund Inc (HERZ) is a ETF from Herzfeld-Cuba and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HERZ returned -5.74% while VYM returned +24.22%. Year to date, HERZ is down 22.67% versus a gain of 16.42% for VYM.
Over three years, HERZ compounded at -2.84% per year against +19.03% for VYM; over five years the annualized figures are -2.21% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs -0.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HERZ has been the more volatile fund, with annualized monthly volatility of 32.5% 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 -84.7% for HERZ 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HERZ charges 3.45% per year while VYM charges 0.04%. On a $10,000 position that is $345 vs $4 annually, a gap of $341 per year that compounds over a long holding period.
Holdings Overlap
HERZ and VYM share 0 holdings out of 622 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, HERZ or VYM?
HERZ has an expense ratio of 3.45% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $341 per year of difference.
Which performed better, HERZ or VYM?
Over the past year HERZ returned -5.74% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), HERZ annualized -0.15% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, HERZ or VYM?
HERZ has been the more volatile fund at 32.5% annualized versus 14.6% for VYM. Worst drawdown: HERZ -84.7% vs VYM -58.8%.
Should I hold both HERZ and VYM?
HERZ and VYM have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HERZ and VYM?
HERZ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 622 unique securities.
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