HYD vs VTI
VanEck High Yield Muni ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | HYD | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.03% | |
| AUM | $4.5B | $666.9B | |
| Dividend Yield | 4.36% | 1.07% | |
| Holdings | 1,887 | 3,543 | |
| YTD Return | -1.37% | +14.82% | |
| 1Y Return | +4.04% | +22.43% | |
| 3Y Return (annualized) | +3.20% | +21.93% | |
| 5Y Return (annualized) | -1.08% | +12.34% | |
| Volatility (annualized) | 63.2% | 15.4% | |
| Max Drawdown | -56.8% | -56.6% | |
| Fund Family | VanEck | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 4, 2009 | May 24, 2001 |
HYD vs VTI Performance
VanEck High Yield Muni ETF (HYD) is a ETF from VanEck and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year HYD returned +4.04% while VTI returned +22.43%. Year to date, HYD is down 1.37% versus a gain of 14.82% for VTI.
Over three years, HYD compounded at +3.20% per year against +21.93% for VTI; over five years the annualized figures are -1.08% and +12.34% respectively. Across the full 18-year window we track, VTI has the edge at +8.16% annualized vs +4.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HYD has been the more volatile fund, with annualized monthly volatility of 63.2% compared with 15.4% for VTI. 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 -56.8% for HYD and -56.6% for VTI. 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 0.09. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYD charges 0.32% per year while VTI charges 0.03%. On a $10,000 position that is $32 vs $3 annually, a gap of $29 per year that compounds over a long holding period. On income, HYD currently yields 4.36% against 1.07% for VTI.
Holdings Overlap
HYD and VTI share 0 holdings out of 2799 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, HYD or VTI?
HYD has an expense ratio of 0.32% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, HYD or VTI?
Over the past year HYD returned +4.04% vs +22.43% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (18 years), HYD annualized +4.75% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, HYD or VTI?
HYD has been the more volatile fund at 63.2% annualized versus 15.4% for VTI. Worst drawdown: HYD -56.8% vs VTI -56.6%.
Should I hold both HYD and VTI?
HYD and VTI have a monthly-return correlation of 0.09, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYD and VTI?
HYD and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2799 unique securities.
Which pays a higher dividend, HYD or VTI?
HYD yields 4.36% while VTI yields 1.07%, so HYD currently pays the higher dividend yield.
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