HYGW vs VYM
iShares High Yield Corporate Bond BuyWrite Strategy ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | HYGW | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.04% | |
| AUM | $112M | $81.6B | |
| Dividend Yield | 10.71% | 2.24% | |
| Holdings | 4 | 616 | |
| YTD Return | -2.98% | +16.42% | |
| 1Y Return | -0.79% | +24.22% | |
| 3Y Return (annualized) | +3.24% | +19.03% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 3.6% | 14.6% | |
| Max Drawdown | -5.5% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 18, 2022 | Nov 10, 2006 |
HYGW vs VYM Performance
iShares High Yield Corporate Bond BuyWrite Strategy ETF (HYGW) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HYGW returned -0.79% while VYM returned +24.22%. Year to date, HYGW is down 2.98% versus a gain of 16.42% for VYM.
Over three years, HYGW compounded at +3.24% per year against +19.03% for VYM. Across the full 4-year window we track, VYM has the edge at +7.10% annualized vs +4.08%. 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 3.6% for HYGW. 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 -5.5% for HYGW 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYGW charges 0.69% per year while VYM charges 0.04%. On a $10,000 position that is $69 vs $4 annually, a gap of $65 per year that compounds over a long holding period. On income, HYGW currently yields 10.71% against 2.24% for VYM.
Holdings Overlap
HYGW and VYM share 0 holdings out of 605 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, HYGW or VYM?
HYGW has an expense ratio of 0.69% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $65 per year of difference.
Which performed better, HYGW or VYM?
Over the past year HYGW returned -0.79% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), HYGW annualized +4.08% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, HYGW or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.6% for HYGW. Worst drawdown: HYGW -5.5% vs VYM -58.8%.
Should I hold both HYGW and VYM?
HYGW and VYM have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYGW and VYM?
HYGW and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 605 unique securities.
Which pays a higher dividend, HYGW or VYM?
HYGW yields 10.71% while VYM yields 2.24%, so HYGW currently pays the higher dividend yield.
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