KHPI vs VYM
Kensington Hedged Premium Income 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 | KHPI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.04% | |
| AUM | $413M | $79.0B | |
| Dividend Yield | 8.96% | 2.86% | |
| Holdings | 7 | 568 | |
| YTD Return | +2.57% | +16.10% | |
| 1Y Return | +6.36% | +25.99% | |
| 3Y Return (annualized) | - | +18.29% | |
| 5Y Return (annualized) | - | +12.35% | |
| Volatility (annualized) | 8.9% | 14.6% | |
| Max Drawdown | -10.6% | -58.8% | |
| Fund Family | Kensington Funds | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 4, 2024 | Nov 10, 2006 |
KHPI vs VYM Performance
Kensington Hedged Premium Income ETF (KHPI) is a ETF from Kensington Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KHPI returned +6.36% while VYM returned +25.99%. Year to date, KHPI is up 2.57% versus a gain of 16.10% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 8.9% for KHPI. 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 -10.6% for KHPI 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KHPI charges 0.98% per year while VYM charges 0.04%. On a $10,000 position that is $98 vs $4 annually, a gap of $94 per year that compounds over a long holding period. On income, KHPI currently yields 8.96% against 2.86% for VYM.
Holdings Overlap
KHPI and VYM share 0 holdings out of 559 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, KHPI or VYM?
KHPI has an expense ratio of 0.98% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $94 per year of difference.
Which performed better, KHPI or VYM?
Over the past year KHPI returned +6.36% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), KHPI annualized +9.01% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, KHPI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.9% for KHPI. Worst drawdown: KHPI -10.6% vs VYM -58.8%.
Should I hold both KHPI and VYM?
KHPI and VYM have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KHPI and VYM?
KHPI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, KHPI or VYM?
KHPI yields 8.96% while VYM yields 2.86%, so KHPI currently pays the higher dividend yield.
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