HFEQ vs VYM

Quick Verdict

VYM has a lower expense ratio. HFEQ delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: HFEQMore Diversified: VYM

Side-by-Side Comparison

MetricHFEQVYMWinner
Expense Ratio0.96%0.04%
AUM$18M$79.0B
Dividend Yield0.00%2.86%
Holdings24568
YTD Return+18.70%+16.78%
1Y Return+31.56%+24.43%
3Y Return (annualized)-+18.60%
5Y Return (annualized)-+12.30%
Volatility (annualized)16.4%14.6%
Max Drawdown-12.5%-58.8%
Fund FamilyUnlimited FundsVanguard (US)
CategoryAlternativeEquity
InceptionJul 14, 2025Nov 10, 2006

HFEQ vs VYM Performance

Unlimited HFEQ Equity Long/Short ETF (HFEQ) is a ETF from Unlimited Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HFEQ returned +31.56% while VYM returned +24.43%. Year to date, HFEQ is up 18.70% versus a gain of 16.78% for VYM.

Risk: Volatility and Drawdowns

HFEQ has been the more volatile fund, with annualized monthly volatility of 16.4% 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 -12.5% for HFEQ 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HFEQ charges 0.96% per year while VYM charges 0.04%. On a $10,000 position that is $96 vs $4 annually, a gap of $92 per year that compounds over a long holding period. On income, HFEQ currently yields 0.00% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

HFEQ and VYM share 0 holdings out of 572 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, HFEQ or VYM?

HFEQ has an expense ratio of 0.96% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $92 per year of difference.

Which performed better, HFEQ or VYM?

Over the past year HFEQ returned +31.56% vs +24.43% for VYM, so HFEQ leads on 1-year performance. Over the longest common window we track (1 years), HFEQ annualized +35.07% vs +7.11% for VYM. Past performance does not guarantee future results.

Which is riskier, HFEQ or VYM?

HFEQ has been the more volatile fund at 16.4% annualized versus 14.6% for VYM. Worst drawdown: HFEQ -12.5% vs VYM -58.8%.

Should I hold both HFEQ and VYM?

HFEQ and VYM have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HFEQ and VYM?

HFEQ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 572 unique securities.

Which pays a higher dividend, HFEQ or VYM?

HFEQ yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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