LFAI vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricLFAIVYMWinner
Expense Ratio0.25%0.04%
AUM$4M$79.0B
Dividend Yield13.53%2.86%
Holdings23568
YTD Return-6.09%+16.10%
1Y Return-3.75%+25.99%
3Y Return (annualized)-+18.29%
5Y Return (annualized)-+12.35%
Volatility (annualized)6.7%14.6%
Max Drawdown-8.6%-58.8%
Fund FamilyStone Ridge Asset ManagementVanguard (US)
CategoryFixed IncomeEquity
InceptionJan 8, 2024Nov 10, 2006

LFAI vs VYM Performance

LifeX 2050 Longevity Income ETF (LFAI) 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 LFAI returned -3.75% while VYM returned +25.99%. Year to date, LFAI is down 6.09% versus a gain of 16.10% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 6.7% 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 -8.6% for LFAI 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.

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 2.86% for VYM.

Holdings Overlap

0.0%overlap

LFAI and VYM share 0 holdings out of 576 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, LFAI or VYM?

LFAI 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, LFAI or VYM?

Over the past year LFAI returned -3.75% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), LFAI annualized -3.76% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, LFAI or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 6.7% for LFAI. Worst drawdown: LFAI -8.6% vs VYM -58.8%.

Should I hold both LFAI and VYM?

LFAI and VYM have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between LFAI and VYM?

LFAI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 576 unique securities.

Which pays a higher dividend, LFAI or VYM?

LFAI yields 13.53% while VYM yields 2.86%, so LFAI currently pays the higher dividend yield.

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