HVAC vs VYM

HVAC vs VYM
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Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricHVACVYMWinner
Expense Ratio1.00%0.04%
AUM$15M$81.6B
Dividend Yield0.17%2.24%
Holdings22616
YTD Return+8.59%+15.60%
1Y Return+15.36%+23.48%
3Y Return (annualized)-+19.07%
5Y Return (annualized)-+12.50%
Volatility (annualized)28.6%14.6%
Max Drawdown-24.7%-58.8%
Fund FamilyAdvisorShares TrustVanguard (US)
CategoryEquityEquity
InceptionFeb 3, 2025Nov 10, 2006

HVAC vs VYM Performance

AdvisorShares HVAC and Industrials ETF (HVAC) is a ETF from AdvisorShares Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HVAC returned +15.36% while VYM returned +23.48%. Year to date, HVAC is up 8.59% versus a gain of 15.60% for VYM.

Risk: Volatility and Drawdowns

HVAC has been the more volatile fund, with annualized monthly volatility of 28.6% 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 -24.7% for HVAC 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HVAC charges 1.00% per year while VYM charges 0.04%. On a $10,000 position that is $100 vs $4 annually, a gap of $96 per year that compounds over a long holding period. On income, HVAC currently yields 0.17% against 2.24% for VYM.

Holdings Overlap

2.6%overlap

HVAC and VYM share 3 holdings out of 621 unique holdings combined, representing a 2.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HVACWeight in VYMDifference
CAT4.81%2.01%2.80%
MMM5.31%0.35%4.96%
CARR4.51%0.24%4.27%

Frequently Asked Questions

Which is cheaper, HVAC or VYM?

HVAC has an expense ratio of 1.00% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $96 per year of difference.

Which performed better, HVAC or VYM?

Over the past year HVAC returned +15.36% vs +23.48% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), HVAC annualized +24.08% vs +7.05% for VYM. Past performance does not guarantee future results.

Which is riskier, HVAC or VYM?

HVAC has been the more volatile fund at 28.6% annualized versus 14.6% for VYM. Worst drawdown: HVAC -24.7% vs VYM -58.8%.

Should I hold both HVAC and VYM?

HVAC and VYM have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HVAC and VYM?

HVAC and VYM share 3 common holdings with a 2.6% weight overlap. Combined, they hold 621 unique securities.

Which pays a higher dividend, HVAC or VYM?

HVAC yields 0.17% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.

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