HYFI vs VYM
AB High Yield ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. HYFI offers more diversification with 666 holdings.
Side-by-Side Comparison
| Metric | HYFI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.04% | |
| AUM | $333M | $81.6B | |
| Dividend Yield | 6.67% | 2.24% | |
| Holdings | 666 | 616 | |
| YTD Return | +2.57% | +16.42% | |
| 1Y Return | +5.87% | +24.22% | |
| 3Y Return (annualized) | +8.89% | +19.03% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 4.5% | 14.6% | |
| Max Drawdown | -6.3% | -58.8% | |
| Fund Family | AllianceBernstein L.P. | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 15, 2023 | Nov 10, 2006 |
HYFI vs VYM Performance
AB High Yield ETF (HYFI) is a ETF from AllianceBernstein L.P. and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HYFI returned +5.87% while VYM returned +24.22%. Year to date, HYFI is up 2.57% versus a gain of 16.42% for VYM.
Over three years, HYFI compounded at +8.89% per year against +19.03% for VYM. Across the full 3-year window we track, HYFI has the edge at +8.77% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 4.5% for HYFI. 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 -6.3% for HYFI 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYFI charges 0.40% per year while VYM charges 0.04%. On a $10,000 position that is $40 vs $4 annually, a gap of $36 per year that compounds over a long holding period. On income, HYFI currently yields 6.67% against 2.24% for VYM.
Holdings Overlap
HYFI and VYM share 1 holdings out of 1051 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in HYFI | Weight in VYM | Difference |
|---|---|---|---|
| C | 0.01% | 0.94% | 0.93% |
Frequently Asked Questions
Which is cheaper, HYFI or VYM?
HYFI has an expense ratio of 0.40% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, HYFI or VYM?
Over the past year HYFI returned +5.87% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), HYFI annualized +8.77% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, HYFI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.5% for HYFI. Worst drawdown: HYFI -6.3% vs VYM -58.8%.
Should I hold both HYFI and VYM?
HYFI and VYM have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYFI and VYM?
HYFI and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1051 unique securities.
Which pays a higher dividend, HYFI or VYM?
HYFI yields 6.67% while VYM yields 2.24%, so HYFI currently pays the higher dividend yield.
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