MGV vs VYM
Vanguard Mega Cap Value ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. MGV delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | MGV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.04% | |
| AUM | $13.2B | $79.0B | |
| Dividend Yield | 2.26% | 2.86% | |
| Holdings | 123 | 568 | |
| YTD Return | +18.69% | +16.16% | |
| 1Y Return | +30.31% | +26.05% | |
| 3Y Return (annualized) | +19.04% | +18.43% | |
| 5Y Return (annualized) | +12.88% | +12.21% | |
| Volatility (annualized) | 15.3% | 14.6% | |
| Max Drawdown | -57.5% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 17, 2007 | Nov 10, 2006 |
MGV vs VYM Performance
Vanguard Mega Cap Value ETF (MGV) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MGV returned +30.31% while VYM returned +26.05%. Year to date, MGV is up 18.69% versus a gain of 16.16% for VYM.
Over three years, MGV compounded at +19.04% per year against +18.43% for VYM; over five years the annualized figures are +12.88% and +12.21% respectively. Across the full 19-year window we track, MGV has the edge at +7.38% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MGV has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -57.5% for MGV 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
MGV charges 0.05% per year while VYM charges 0.04%. On a $10,000 position that is $5 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, MGV currently yields 2.26% against 2.86% for VYM.
Holdings Overlap
MGV and VYM share 80 holdings out of 601 unique holdings combined, representing a 58.9% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, MGV or VYM?
MGV has an expense ratio of 0.05% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, MGV or VYM?
Over the past year MGV returned +30.31% vs +26.05% for VYM, so MGV leads on 1-year performance. Over the longest common window we track (19 years), MGV annualized +7.38% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, MGV or VYM?
MGV has been the more volatile fund at 15.3% annualized versus 14.6% for VYM. Worst drawdown: MGV -57.5% vs VYM -58.8%.
Should I hold both MGV and VYM?
MGV and VYM have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between MGV and VYM?
MGV and VYM share 80 common holdings with a 58.9% weight overlap. Combined, they hold 601 unique securities.
Which pays a higher dividend, MGV or VYM?
MGV yields 2.26% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.