KMLM vs VYM
KraneShares Mount Lucas Managed Futures Index 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 616 holdings.
Side-by-Side Comparison
| Metric | KMLM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.90% | 0.04% | |
| AUM | $389M | $81.6B | |
| Dividend Yield | 4.47% | 2.24% | |
| Holdings | 32 | 616 | |
| YTD Return | +11.15% | +15.60% | |
| 1Y Return | +13.64% | +23.48% | |
| 3Y Return (annualized) | -0.75% | +19.07% | |
| 5Y Return (annualized) | +5.77% | +12.50% | |
| Volatility (annualized) | 12.9% | 14.6% | |
| Max Drawdown | -27.5% | -58.8% | |
| Fund Family | KraneShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 1, 2020 | Nov 10, 2006 |
KMLM vs VYM Performance
KraneShares Mount Lucas Managed Futures Index Strategy ETF (KMLM) is a ETF from KraneShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KMLM returned +13.64% while VYM returned +23.48%. Year to date, KMLM is up 11.15% versus a gain of 15.60% for VYM.
Over three years, KMLM compounded at -0.75% per year against +19.07% for VYM; over five years the annualized figures are +5.77% and +12.50% respectively. Across the full 6-year window we track, KMLM has the edge at +7.13% annualized vs +7.05%. 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 12.9% for KMLM. 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 -27.5% for KMLM 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 -0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KMLM charges 0.90% per year while VYM charges 0.04%. On a $10,000 position that is $90 vs $4 annually, a gap of $86 per year that compounds over a long holding period. On income, KMLM currently yields 4.47% against 2.24% for VYM.
Holdings Overlap
KMLM and VYM share 11 holdings out of 607 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, KMLM or VYM?
KMLM has an expense ratio of 0.90% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $86 per year of difference.
Which performed better, KMLM or VYM?
Over the past year KMLM returned +13.64% vs +23.48% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), KMLM annualized +7.13% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, KMLM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.9% for KMLM. Worst drawdown: KMLM -27.5% vs VYM -58.8%.
Should I hold both KMLM and VYM?
KMLM and VYM have a monthly-return correlation of -0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KMLM and VYM?
KMLM and VYM share 11 common holdings with a 0.0% weight overlap. Combined, they hold 607 unique securities.
Which pays a higher dividend, KMLM or VYM?
KMLM yields 4.47% while VYM yields 2.24%, so KMLM currently pays the higher dividend yield.
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