LFAI vs VYM

LFAI vs VYM

Which is better, LFAI or VYM?

Long Term Government Bond against Large Cap Value.

VYM has a lower expense ratio. VYM led over 1Y 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

MetricLFAIVYM
Expense Ratio0.25%0.04%Best
AUM$4M$81.6B
Dividend Yield13.53%2.22%
Holdings23613
YTD Return-7.14%+12.29%Best
1Y Return-6.96%+16.61%Best
3Y Return (annualized)-+17.42%
5Y Return (annualized)-+12.12%
Volatility (annualized)6.6%Best10.6%
Max Drawdown-9.7%Best-14.5%
$10,000 over 2 years$9,195$13,324Best
Fund FamilyStone Ridge Asset ManagementVanguard (US)
CategoryFixed IncomeEquity
StyleLong Term Government BondLarge Cap Value
InceptionJan 8, 2024Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 2 years row, are measured over the window both funds cover: Sep 16, 2024 to Sep 17, 2026 (2 years).

LFAI 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 2 years both funds cover.

LFAI vs VYM Performance

LifeX 2050 Longevity Income ETF (LFAI) is an ETF from Stone Ridge Asset Management and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year LFAI returned -6.96% while VYM returned +16.61%. Year to date, LFAI is down 7.14% versus a gain of 12.29% for VYM.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 10.6% compared with 6.6% for LFAI. 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 -9.7% for LFAI and -14.5% 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 0.38. They move together some of the time, and apart the rest.

Fees and Cost Over Time

LFAI 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, LFAI currently yields 13.53% against 2.22% for VYM.

Holdings Overlap

We hold position weights for 18 holdings in LFAI and 557 in VYM, totalling 94.2% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 18 positions we hold weights for in LFAI and 557 in VYM, against full books of 23 and 613.

You are not choosing between two funds in isolation.

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

LFAIVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, LFAI or VYM?

LFAI has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option, by $21 a year on a $10,000 investment.

Which performed better, LFAI or VYM?

Over the past year LFAI returned -6.96% vs +16.61% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), LFAI annualized -4.11% vs +15.43% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, LFAI or VYM?

VYM has been the more volatile fund at 10.6% annualized versus 6.6% for LFAI. Worst drawdown: LFAI -9.7% vs VYM -14.5%.

Should I hold both LFAI and VYM?

LFAI and VYM have a monthly-return correlation of 0.38, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, LFAI or VYM?

LFAI yields 13.53% while VYM yields 2.22%, so LFAI currently pays the higher dividend yield.

Is VYM better than LFAI?

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