HTD vs VYM
John Hancock Tax-Advantaged Dividend Income Fund 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 | HTD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.96% | 0.04% | |
| AUM | $917M | $81.6B | |
| Dividend Yield | 7.17% | 2.24% | |
| Holdings | 124 | 616 | |
| YTD Return | +12.61% | +16.42% | |
| 1Y Return | +12.47% | +24.22% | |
| 3Y Return (annualized) | +17.94% | +19.03% | |
| 5Y Return (annualized) | +8.21% | +12.21% | |
| Volatility (annualized) | 19.3% | 14.6% | |
| Max Drawdown | -75.5% | -58.8% | |
| Fund Family | John Hancock Investment Management | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 27, 2004 | Nov 10, 2006 |
HTD vs VYM Performance
John Hancock Tax-Advantaged Dividend Income Fund (HTD) is a ETF from John Hancock Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HTD returned +12.47% while VYM returned +24.22%. Year to date, HTD is up 12.61% versus a gain of 16.42% for VYM.
Over three years, HTD compounded at +17.94% per year against +19.03% for VYM; over five years the annualized figures are +8.21% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs +3.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HTD has been the more volatile fund, with annualized monthly volatility of 19.3% 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 -75.5% for HTD 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HTD charges 1.96% per year while VYM charges 0.04%. On a $10,000 position that is $196 vs $4 annually, a gap of $192 per year that compounds over a long holding period. On income, HTD currently yields 7.17% against 2.24% for VYM.
Holdings Overlap
HTD and VYM share 48 holdings out of 628 unique holdings combined, representing a 11.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HTD or VYM?
HTD has an expense ratio of 1.96% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $192 per year of difference.
Which performed better, HTD or VYM?
Over the past year HTD returned +12.47% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), HTD annualized +3.01% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, HTD or VYM?
HTD has been the more volatile fund at 19.3% annualized versus 14.6% for VYM. Worst drawdown: HTD -75.5% vs VYM -58.8%.
Should I hold both HTD and VYM?
HTD and VYM have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HTD and VYM?
HTD and VYM share 48 common holdings with a 11.1% weight overlap. Combined, they hold 628 unique securities.
Which pays a higher dividend, HTD or VYM?
HTD yields 7.17% while VYM yields 2.24%, so HTD currently pays the higher dividend yield.
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