MDY vs VYM
State Street SPDR S&P MIDCAP 400 ETF Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | MDY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.23% | 0.04% | |
| AUM | $26.7B | $79.0B | |
| Dividend Yield | 1.00% | 2.86% | |
| Holdings | 401 | 568 | |
| YTD Return | +17.00% | +16.53% | |
| 1Y Return | +23.68% | +25.03% | |
| 3Y Return (annualized) | +14.89% | +18.54% | |
| 5Y Return (annualized) | +8.68% | +12.25% | |
| Volatility (annualized) | 17.9% | 14.6% | |
| Max Drawdown | -56.3% | -58.8% | |
| Fund Family | SPDR State Street Global Advisors | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 4, 1995 | Nov 10, 2006 |
MDY vs VYM Performance
State Street SPDR S&P MIDCAP 400 ETF Trust (MDY) is a ETF from SPDR State Street Global Advisors and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MDY returned +23.68% while VYM returned +25.03%. Year to date, MDY is up 17.00% versus a gain of 16.53% for VYM.
Over three years, MDY compounded at +14.89% per year against +18.54% for VYM; over five years the annualized figures are +8.68% and +12.25% respectively. Across the full 20-year window we track, MDY has the edge at +9.78% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MDY has been the more volatile fund, with annualized monthly volatility of 17.9% 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 -56.3% for MDY 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MDY charges 0.23% per year while VYM charges 0.04%. On a $10,000 position that is $23 vs $4 annually, a gap of $19 per year that compounds over a long holding period. On income, MDY currently yields 1.00% against 2.86% for VYM.
Holdings Overlap
MDY and VYM share 121 holdings out of 835 unique holdings combined, representing a 3.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MDY or VYM?
MDY has an expense ratio of 0.23% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, MDY or VYM?
Over the past year MDY returned +23.68% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), MDY annualized +9.78% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, MDY or VYM?
MDY has been the more volatile fund at 17.9% annualized versus 14.6% for VYM. Worst drawdown: MDY -56.3% vs VYM -58.8%.
Should I hold both MDY and VYM?
MDY and VYM have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MDY and VYM?
MDY and VYM share 121 common holdings with a 3.9% weight overlap. Combined, they hold 835 unique securities.
Which pays a higher dividend, MDY or VYM?
MDY yields 1.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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