MCR vs VYM
MFS Charter Income Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. MCR offers more diversification with 1,076 holdings.
Side-by-Side Comparison
| Metric | MCR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.04% | |
| AUM | $270M | $81.6B | |
| Dividend Yield | 8.17% | 2.24% | |
| Holdings | 1,076 | 616 | |
| YTD Return | -0.55% | +15.34% | |
| 1Y Return | +3.59% | +23.24% | |
| 3Y Return (annualized) | +7.80% | +19.22% | |
| 5Y Return (annualized) | +0.97% | +12.21% | |
| Volatility (annualized) | 10.2% | 14.6% | |
| Max Drawdown | -45.2% | -58.8% | |
| Fund Family | MFS Investment Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 20, 1989 | Nov 10, 2006 |
MCR vs VYM Performance
MFS Charter Income Trust (MCR) is a ETF from MFS Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MCR returned +3.59% while VYM returned +23.24%. Year to date, MCR is down 0.55% versus a gain of 15.34% for VYM.
Over three years, MCR compounded at +7.80% per year against +19.22% for VYM; over five years the annualized figures are +0.97% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.04% annualized vs +0.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 10.2% for MCR. 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 -45.2% for MCR 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MCR charges 1.02% per year while VYM charges 0.04%. On a $10,000 position that is $102 vs $4 annually, a gap of $98 per year that compounds over a long holding period. On income, MCR currently yields 8.17% against 2.24% for VYM.
Holdings Overlap
MCR and VYM share 1 holdings out of 1151 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MCR | Weight in VYM | Difference |
|---|---|---|---|
| TMUS | 0.02% | 0.34% | 0.32% |
Frequently Asked Questions
Which is cheaper, MCR or VYM?
MCR has an expense ratio of 1.02% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $98 per year of difference.
Which performed better, MCR or VYM?
Over the past year MCR returned +3.59% vs +23.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), MCR annualized +0.16% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, MCR or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 10.2% for MCR. Worst drawdown: MCR -45.2% vs VYM -58.8%.
Should I hold both MCR and VYM?
MCR and VYM have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCR and VYM?
MCR and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1151 unique securities.
Which pays a higher dividend, MCR or VYM?
MCR yields 8.17% while VYM yields 2.24%, so MCR currently pays the higher dividend yield.
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