KLIP vs VYM
KraneShares KWEB Covered Call 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 558 holdings.
Side-by-Side Comparison
| Metric | KLIP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.04% | |
| AUM | $102M | $79.0B | |
| Dividend Yield | 32.52% | 2.86% | |
| Holdings | 10 | 568 | |
| YTD Return | -10.21% | +16.53% | |
| 1Y Return | -6.30% | +25.03% | |
| 3Y Return (annualized) | +5.79% | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 14.6% | 14.6% | |
| Max Drawdown | -21.5% | -58.8% | |
| Fund Family | KraneShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 11, 2023 | Nov 10, 2006 |
KLIP vs VYM Performance
KraneShares KWEB Covered Call Strategy ETF (KLIP) is a ETF from KraneShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KLIP returned -6.30% while VYM returned +25.03%. Year to date, KLIP is down 10.21% versus a gain of 16.53% for VYM.
Over three years, KLIP compounded at +5.79% per year against +18.54% for VYM. Across the full 4-year window we track, VYM has the edge at +7.10% annualized vs +5.53%. 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 14.6% for KLIP. 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 -21.5% for KLIP 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KLIP charges 0.95% per year while VYM charges 0.04%. On a $10,000 position that is $95 vs $4 annually, a gap of $91 per year that compounds over a long holding period. On income, KLIP currently yields 32.52% against 2.86% for VYM.
Holdings Overlap
KLIP 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, KLIP or VYM?
KLIP has an expense ratio of 0.95% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $91 per year of difference.
Which performed better, KLIP or VYM?
Over the past year KLIP returned -6.30% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), KLIP annualized +5.53% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, KLIP or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.6% for KLIP. Worst drawdown: KLIP -21.5% vs VYM -58.8%.
Should I hold both KLIP and VYM?
KLIP and VYM have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KLIP and VYM?
KLIP and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, KLIP or VYM?
KLIP yields 32.52% while VYM yields 2.86%, so KLIP currently pays the higher dividend yield.
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