HYSD vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricHYSDVYMWinner
Expense Ratio0.44%0.04%
AUM$105M$79.0B
Dividend Yield5.80%2.86%
Holdings304568
YTD Return+1.63%+16.53%
1Y Return+4.29%+25.03%
3Y Return (annualized)-+18.54%
5Y Return (annualized)-+12.25%
Volatility (annualized)2.1%14.6%
Max Drawdown-2.7%-58.8%
Fund FamilyColumbia Threadneedle InvestmentsVanguard (US)
CategoryFixed IncomeEquity
InceptionSep 5, 2024Nov 10, 2006

HYSD vs VYM Performance

Columbia Short Duration High Yield ETF (HYSD) is a ETF from Columbia Threadneedle Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HYSD returned +4.29% while VYM returned +25.03%. Year to date, HYSD is up 1.63% versus a gain of 16.53% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 2.1% for HYSD. 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 -2.7% for HYSD 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HYSD charges 0.44% per year while VYM charges 0.04%. On a $10,000 position that is $44 vs $4 annually, a gap of $40 per year that compounds over a long holding period. On income, HYSD currently yields 5.80% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

HYSD and VYM share 0 holdings out of 830 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, HYSD or VYM?

HYSD has an expense ratio of 0.44% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $40 per year of difference.

Which performed better, HYSD or VYM?

Over the past year HYSD returned +4.29% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), HYSD annualized +5.06% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, HYSD or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 2.1% for HYSD. Worst drawdown: HYSD -2.7% vs VYM -58.8%.

Should I hold both HYSD and VYM?

HYSD and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HYSD and VYM?

HYSD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 830 unique securities.

Which pays a higher dividend, HYSD or VYM?

HYSD yields 5.80% while VYM yields 2.86%, so HYSD currently pays the higher dividend yield.

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