HIPS vs VYM

Quick Verdict

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

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricHIPSVYMWinner
Expense Ratio1.17%0.04%
AUM$113M$79.0B
Dividend Yield11.21%2.86%
Holdings41568
YTD Return+6.49%+16.53%
1Y Return+8.30%+25.03%
3Y Return (annualized)+9.86%+18.54%
5Y Return (annualized)+4.67%+12.25%
Volatility (annualized)18.5%14.6%
Max Drawdown-61.6%-58.8%
Fund FamilyGraniteSharesVanguard (US)
CategoryAllocation/BalancedEquity
InceptionJan 7, 2015Nov 10, 2006

HIPS vs VYM Performance

GraniteShares HIPS US High Income ETF (HIPS) is a ETF from GraniteShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HIPS returned +8.30% while VYM returned +25.03%. Year to date, HIPS is up 6.49% versus a gain of 16.53% for VYM.

Over three years, HIPS compounded at +9.86% per year against +18.54% for VYM; over five years the annualized figures are +4.67% and +12.25% respectively. Across the full 12-year window we track, VYM has the edge at +7.10% annualized vs +0.14%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

HIPS has been the more volatile fund, with annualized monthly volatility of 18.5% 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 -61.6% for HIPS 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 0.82. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HIPS charges 1.17% per year while VYM charges 0.04%. On a $10,000 position that is $117 vs $4 annually, a gap of $113 per year that compounds over a long holding period. On income, HIPS currently yields 11.21% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

HIPS and VYM share 0 holdings out of 598 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, HIPS or VYM?

HIPS has an expense ratio of 1.17% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $113 per year of difference.

Which performed better, HIPS or VYM?

Over the past year HIPS returned +8.30% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), HIPS annualized +0.14% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, HIPS or VYM?

HIPS has been the more volatile fund at 18.5% annualized versus 14.6% for VYM. Worst drawdown: HIPS -61.6% vs VYM -58.8%.

Should I hold both HIPS and VYM?

HIPS and VYM have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HIPS and VYM?

HIPS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 598 unique securities.

Which pays a higher dividend, HIPS or VYM?

HIPS yields 11.21% while VYM yields 2.86%, so HIPS currently pays the higher dividend yield.

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