HYZD vs VYM
WisdomTree Interest Rate Hedged High Yield Bond Fund 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 | HYZD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.43% | 0.04% | |
| AUM | $273M | $81.6B | |
| Dividend Yield | 5.90% | 2.24% | |
| Holdings | 505 | 616 | |
| YTD Return | +3.62% | +14.66% | |
| 1Y Return | +6.64% | +22.16% | |
| 3Y Return (annualized) | +8.42% | +18.72% | |
| 5Y Return (annualized) | +6.30% | +12.18% | |
| Volatility (annualized) | 7.7% | 14.6% | |
| Max Drawdown | -33.1% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 18, 2013 | Nov 10, 2006 |
HYZD vs VYM Performance
WisdomTree Interest Rate Hedged High Yield Bond Fund (HYZD) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HYZD returned +6.64% while VYM returned +22.16%. Year to date, HYZD is up 3.62% versus a gain of 14.66% for VYM.
Over three years, HYZD compounded at +8.42% per year against +18.72% for VYM; over five years the annualized figures are +6.30% and +12.18% respectively. Across the full 13-year window we track, VYM has the edge at +7.01% annualized vs +1.58%. 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 7.7% for HYZD. 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 -33.1% for HYZD 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYZD charges 0.43% per year while VYM charges 0.04%. On a $10,000 position that is $43 vs $4 annually, a gap of $39 per year that compounds over a long holding period. On income, HYZD currently yields 5.90% against 2.24% for VYM.
Holdings Overlap
HYZD and VYM share 1 holdings out of 988 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 HYZD | Weight in VYM | Difference |
|---|---|---|---|
| PFSI 4.25 02/15/29 1 | 0.07% | 0.01% | 0.06% |
Frequently Asked Questions
Which is cheaper, HYZD or VYM?
HYZD has an expense ratio of 0.43% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $39 per year of difference.
Which performed better, HYZD or VYM?
Over the past year HYZD returned +6.64% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), HYZD annualized +1.58% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, HYZD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.7% for HYZD. Worst drawdown: HYZD -33.1% vs VYM -58.8%.
Should I hold both HYZD and VYM?
HYZD and VYM have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYZD and VYM?
HYZD and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 988 unique securities.
Which pays a higher dividend, HYZD or VYM?
HYZD yields 5.90% while VYM yields 2.24%, so HYZD currently pays the higher dividend yield.
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