LDDR vs VYM
LifeX 2035 Income Bucket 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 | LDDR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.04% | |
| AUM | $41M | $79.0B | |
| Dividend Yield | 12.63% | 2.86% | |
| Holdings | 42 | 568 | |
| YTD Return | -8.03% | +15.80% | |
| 1Y Return | -6.30% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 4.3% | 14.6% | |
| Max Drawdown | -8.5% | -58.8% | |
| Fund Family | Stone Ridge Asset Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 6, 2025 | Nov 10, 2006 |
LDDR vs VYM Performance
LifeX 2035 Income Bucket ETF (LDDR) is a ETF from Stone Ridge Asset Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year LDDR returned -6.30% while VYM returned +26.12%. Year to date, LDDR is down 8.03% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 4.3% for LDDR. 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 -8.5% for LDDR 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 0.10. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LDDR charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, LDDR currently yields 12.63% against 2.86% for VYM.
Holdings Overlap
LDDR and VYM share 0 holdings out of 586 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, LDDR or VYM?
LDDR has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, LDDR or VYM?
Over the past year LDDR returned -6.30% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), LDDR annualized -1.19% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, LDDR or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.3% for LDDR. Worst drawdown: LDDR -8.5% vs VYM -58.8%.
Should I hold both LDDR and VYM?
LDDR and VYM have a monthly-return correlation of 0.10, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LDDR and VYM?
LDDR and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 586 unique securities.
Which pays a higher dividend, LDDR or VYM?
LDDR yields 12.63% while VYM yields 2.86%, so LDDR currently pays the higher dividend yield.
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