LKOR vs VYM
FlexShares Credit-Scored US Long Corporate Bond Index Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. LKOR offers more diversification with 771 holdings.
Side-by-Side Comparison
| Metric | LKOR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $30M | $79.0B | |
| Dividend Yield | 5.70% | 2.86% | |
| Holdings | 817 | 568 | |
| YTD Return | -5.68% | +16.16% | |
| 1Y Return | -4.05% | +26.05% | |
| 3Y Return (annualized) | +2.92% | +18.43% | |
| 5Y Return (annualized) | -3.68% | +12.21% | |
| Volatility (annualized) | 27.9% | 14.6% | |
| Max Drawdown | -42.4% | -58.8% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 23, 2015 | Nov 10, 2006 |
LKOR vs VYM Performance
FlexShares Credit-Scored US Long Corporate Bond Index Fund (LKOR) is a ETF from Flexshares Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year LKOR returned -4.05% while VYM returned +26.05%. Year to date, LKOR is down 5.68% versus a gain of 16.16% for VYM.
Over three years, LKOR compounded at +2.92% per year against +18.43% for VYM; over five years the annualized figures are -3.68% and +12.21% respectively. Across the full 11-year window we track, VYM has the edge at +7.09% annualized vs +2.14%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LKOR has been the more volatile fund, with annualized monthly volatility of 27.9% compared with 14.6% 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 -42.4% for LKOR 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 0.09. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LKOR charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, LKOR currently yields 5.70% against 2.86% for VYM.
Holdings Overlap
LKOR and VYM share 0 holdings out of 1329 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, LKOR or VYM?
LKOR has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, LKOR or VYM?
Over the past year LKOR returned -4.05% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (11 years), LKOR annualized +2.14% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, LKOR or VYM?
LKOR has been the more volatile fund at 27.9% annualized versus 14.6% for VYM. Worst drawdown: LKOR -42.4% vs VYM -58.8%.
Should I hold both LKOR and VYM?
LKOR and VYM have a monthly-return correlation of 0.09, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LKOR and VYM?
LKOR and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1329 unique securities.
Which pays a higher dividend, LKOR or VYM?
LKOR yields 5.70% while VYM yields 2.86%, so LKOR currently pays the higher dividend yield.
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