KAT vs VYM
Scharf 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 558 holdings.
Side-by-Side Comparison
| Metric | KAT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.04% | |
| AUM | $675M | $79.0B | |
| Dividend Yield | 0.48% | 2.86% | |
| Holdings | 38 | 568 | |
| YTD Return | +6.71% | +16.53% | |
| 1Y Return | +7.78% | +25.03% | |
| 3Y Return (annualized) | - | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 12.6% | 14.6% | |
| Max Drawdown | -9.3% | -58.8% | |
| Fund Family | Scharf Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 30, 2011 | Nov 10, 2006 |
KAT vs VYM Performance
Scharf ETF (KAT) is a ETF from Scharf Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KAT returned +7.78% while VYM returned +25.03%. Year to date, KAT is up 6.71% 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 12.6% for KAT. 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 -9.3% for KAT 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KAT charges 0.75% per year while VYM charges 0.04%. On a $10,000 position that is $75 vs $4 annually, a gap of $71 per year that compounds over a long holding period. On income, KAT currently yields 0.48% against 2.86% for VYM.
Holdings Overlap
KAT and VYM share 8 holdings out of 583 unique holdings combined, representing a 4.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KAT or VYM?
KAT has an expense ratio of 0.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, KAT or VYM?
Over the past year KAT returned +7.78% vs +25.03% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results.
Which is riskier, KAT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.6% for KAT. Worst drawdown: KAT -9.3% vs VYM -58.8%.
Should I hold both KAT and VYM?
KAT and VYM have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KAT and VYM?
KAT and VYM share 8 common holdings with a 4.0% weight overlap. Combined, they hold 583 unique securities.
Which pays a higher dividend, KAT or VYM?
KAT yields 0.48% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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