MDCP 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

MetricMDCPVYMWinner
Expense Ratio0.55%0.04%
AUM$1M$79.0B
Dividend Yield0.28%2.86%
Holdings31568
YTD Return-3.33%+16.10%
1Y Return-1.11%+25.99%
3Y Return (annualized)+5.59%+18.29%
5Y Return (annualized)-+12.35%
Volatility (annualized)19.7%14.6%
Max Drawdown-27.5%-58.8%
Fund FamilyVictory Capital Management Inc.Vanguard (US)
CategoryEquityEquity
InceptionOct 4, 2021Nov 10, 2006

MDCP vs VYM Performance

VictoryShares THB Mid Cap ETF (MDCP) is a ETF from Victory Capital Management Inc. and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MDCP returned -1.11% while VYM returned +25.99%. Year to date, MDCP is down 3.33% versus a gain of 16.10% for VYM.

Over three years, MDCP compounded at +5.59% per year against +18.29% for VYM. Across the full 4-year window we track, VYM has the edge at +7.08% annualized vs +3.26%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MDCP has been the more volatile fund, with annualized monthly volatility of 19.7% 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 -27.5% for MDCP 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 0.83. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

MDCP charges 0.55% per year while VYM charges 0.04%. On a $10,000 position that is $55 vs $4 annually, a gap of $51 per year that compounds over a long holding period. On income, MDCP currently yields 0.28% against 2.86% for VYM.

Frequently Asked Questions

Which is cheaper, MDCP or VYM?

MDCP has an expense ratio of 0.55% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $51 per year of difference.

Which performed better, MDCP or VYM?

Over the past year MDCP returned -1.11% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), MDCP annualized +3.26% vs +7.08% for VYM. Past performance does not guarantee future results.

Which is riskier, MDCP or VYM?

MDCP has been the more volatile fund at 19.7% annualized versus 14.6% for VYM. Worst drawdown: MDCP -27.5% vs VYM -58.8%.

Should I hold both MDCP and VYM?

MDCP and VYM have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, MDCP or VYM?

MDCP yields 0.28% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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