LDP vs VYM

LDP vs VYM

Which is better, LDP or VYM?

Preferred Stock against Large Cap Value.

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VYMHigher Returns: VYM

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricLDPVYM
Expense Ratio1.55%0.04%Best
AUM$2,693.25$81.6B
Dividend Yield7.11%2.22%
Holdings286613
YTD Return-3.01%+12.87%Best
1Y Return-3.08%+17.25%Best
3Y Return (annualized)+12.86%+17.66%Best
5Y Return (annualized)+1.58%+11.98%Best
Volatility (annualized)13.8%13.1%Best
Max Drawdown-50.2%-35.7%Best
$10,000 over 5 years$10,815$17,608Best
Fund FamilyCohen & Steers FundsVanguard (US)
CategoryAllocation/BalancedEquity
StylePreferred StockLarge Cap Value
InceptionJul 27, 2012Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jul 27, 2012 to Sep 15, 2026 (14.1 years).

LDP vs VYM growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.1 years both funds cover.

LDP vs VYM Performance

Cohen & Steers Limited Duration Preferred and Income Fund Inc. (LDP) is an ETF from Cohen & Steers Funds and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year LDP returned -3.08% while VYM returned +17.25%. Year to date, LDP is down 3.01% versus a gain of 12.87% for VYM.

Over three years, LDP compounded at +12.86% per year against +17.66% for VYM; over five years the annualized figures are +1.58% and +11.98% respectively. Across the full 14-year window we track, VYM has the edge at +9.99% annualized vs +1.41%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

LDP has been the more volatile fund, with annualized monthly volatility of 13.8% compared with 13.1% for VYM. 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 -50.2% for LDP and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.63. They move together some of the time, and apart the rest.

Fees and Cost Over Time

LDP charges 1.55% per year while VYM charges 0.04%. On a $10,000 position that is $155 vs $4 annually, a gap of $151 per year that compounds over a long holding period. On income, LDP currently yields 7.11% against 2.22% for VYM.

Holdings Overlap

VYM already in LDP2.0%

At least 2.0% of VYM's money is in holdings LDP also owns.

Stated as a floor: for LDP, our book for it covers 80.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

VYM and LDP share little of their money.

5 positions in common, counted across the 144 positions we hold weights for in LDP and 557 in VYM, against full books of 286 and 613.

Top Shared Holdings

StockWeight in LDPWeight in VYMDifference
NEENextera Energy Inc0.80%0.74%0.06%
CCitigroup Inc 6.875 11/73 6.88 2173-11-150.12%0.89%0.77%
FITBFifth Third Bancorp0.71%0.21%0.50%
MTBM&T Bank Corporation 6.35 12/15/2173 6.35 2173-12-150.72%0.15%0.57%
FHNFirst Horizon National Corp0.48%0.05%0.43%

You are not choosing between two funds in isolation.

Whichever of LDP and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

LDPVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, LDP or VYM?

LDP has an expense ratio of 1.55% while VYM charges 0.04%. VYM is the cheaper option, by $151 a year on a $10,000 investment.

Which performed better, LDP or VYM?

Over the past year LDP returned -3.08% vs +17.25% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (14 years), LDP annualized +1.41% vs +9.99% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, LDP or VYM?

LDP has been the more volatile fund at 13.8% annualized versus 13.1% for VYM. Worst drawdown: LDP -50.2% vs VYM -35.7%.

Should I hold both LDP and VYM?

LDP and VYM have a monthly-return correlation of 0.63, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between LDP and VYM?

At least 2.0% of VYM's money is in holdings LDP also owns. Our book for LDP is partial, so the real figure is this or higher. They hold 5 positions in common, counted across the 144 positions we hold weights for in LDP and 557 in VYM.

Which pays a higher dividend, LDP or VYM?

LDP yields 7.11% while VYM yields 2.22%, so LDP currently pays the higher dividend yield.

Is VYM better than LDP?

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.