HWSM vs VYM
Hotchkis & Wiley SMID Cap Diversified Value Fund ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. HWSM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | HWSM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.04% | |
| AUM | $3M | $81.6B | |
| Dividend Yield | 1.15% | 2.24% | |
| Holdings | 166 | 616 | |
| YTD Return | +15.74% | +14.66% | |
| 1Y Return | +22.68% | +22.16% | |
| 3Y Return (annualized) | - | +18.72% | |
| 5Y Return (annualized) | - | +12.18% | |
| Volatility (annualized) | 12.0% | 14.6% | |
| Max Drawdown | -15.7% | -58.8% | |
| Fund Family | Hotchkis & Wiley Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 31, 2025 | Nov 10, 2006 |
HWSM vs VYM Performance
Hotchkis & Wiley SMID Cap Diversified Value Fund ETF (HWSM) is a ETF from Hotchkis & Wiley Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HWSM returned +22.68% while VYM returned +22.16%. Year to date, HWSM is up 15.74% versus a gain of 14.66% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 12.0% for HWSM. 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 -15.7% for HWSM 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HWSM charges 0.55% per year while VYM charges 0.04%. On a $10,000 position that is $55 vs $4 annually, a gap of $51 per year that compounds over a long holding period. On income, HWSM currently yields 1.15% against 2.24% for VYM.
Holdings Overlap
HWSM and VYM share 96 holdings out of 672 unique holdings combined, representing a 4.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HWSM or VYM?
HWSM has an expense ratio of 0.55% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, HWSM or VYM?
Over the past year HWSM returned +22.68% vs +22.16% for VYM, so HWSM leads on 1-year performance. Over the longest common window we track (1 years), HWSM annualized +21.08% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, HWSM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.0% for HWSM. Worst drawdown: HWSM -15.7% vs VYM -58.8%.
Should I hold both HWSM and VYM?
HWSM and VYM have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HWSM and VYM?
HWSM and VYM share 96 common holdings with a 4.4% weight overlap. Combined, they hold 672 unique securities.
Which pays a higher dividend, HWSM or VYM?
HWSM yields 1.15% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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