HYD vs VYM
VanEck High Yield Muni ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. HYD offers more diversification with 1,887 holdings.
Side-by-Side Comparison
| Metric | HYD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.04% | |
| AUM | $4.5B | $81.6B | |
| Dividend Yield | 4.36% | 2.24% | |
| Holdings | 1,887 | 616 | |
| YTD Return | -1.72% | +15.84% | |
| 1Y Return | +3.54% | +23.95% | |
| 3Y Return (annualized) | +3.26% | +19.02% | |
| 5Y Return (annualized) | -1.15% | +12.19% | |
| Volatility (annualized) | 63.2% | 14.6% | |
| Max Drawdown | -56.8% | -58.8% | |
| Fund Family | VanEck | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 4, 2009 | Nov 10, 2006 |
HYD vs VYM Performance
VanEck High Yield Muni ETF (HYD) is a ETF from VanEck and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HYD returned +3.54% while VYM returned +23.95%. Year to date, HYD is down 1.72% versus a gain of 15.84% for VYM.
Over three years, HYD compounded at +3.26% per year against +19.02% for VYM; over five years the annualized figures are -1.15% and +12.19% respectively. Across the full 18-year window we track, VYM has the edge at +7.07% annualized vs +4.73%. 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 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 -56.8% for HYD 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 0.09. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYD charges 0.32% per year while VYM charges 0.04%. On a $10,000 position that is $32 vs $4 annually, a gap of $28 per year that compounds over a long holding period. On income, HYD currently yields 4.36% against 2.24% for VYM.
Holdings Overlap
HYD and VYM share 0 holdings out of 615 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 VYM?
HYD has an expense ratio of 0.32% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $28 per year of difference.
Which performed better, HYD or VYM?
Over the past year HYD returned +3.54% vs +23.95% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (18 years), HYD annualized +4.73% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, HYD or VYM?
HYD has been the more volatile fund at 63.2% annualized versus 14.6% for VYM. Worst drawdown: HYD -56.8% vs VYM -58.8%.
Should I hold both HYD and VYM?
HYD and VYM 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 VYM?
HYD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 615 unique securities.
Which pays a higher dividend, HYD or VYM?
HYD yields 4.36% while VYM yields 2.24%, so HYD currently pays the higher dividend yield.
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