MOAT vs VYM
VanEck Morningstar Wide Moat ETF 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 616 holdings.
Side-by-Side Comparison
| Metric | MOAT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.46% | 0.04% | |
| AUM | $11.9B | $81.6B | |
| Dividend Yield | 1.30% | 2.24% | |
| Holdings | 57 | 616 | |
| YTD Return | +10.73% | +15.42% | |
| 1Y Return | +16.49% | +22.36% | |
| 3Y Return (annualized) | +14.54% | +19.06% | |
| 5Y Return (annualized) | +9.49% | +12.20% | |
| Volatility (annualized) | 154573.1% | 14.6% | |
| Max Drawdown | -96.0% | -58.8% | |
| Fund Family | VanEck | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 24, 2012 | Nov 10, 2006 |
MOAT vs VYM Performance
VanEck Morningstar Wide Moat ETF (MOAT) is a ETF from VanEck and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MOAT returned +16.49% while VYM returned +22.36%. Year to date, MOAT is up 10.73% versus a gain of 15.42% for VYM.
Over three years, MOAT compounded at +14.54% per year against +19.06% for VYM; over five years the annualized figures are +9.49% and +12.20% respectively. Across the full 19-year window we track, MOAT has the edge at +52.44% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MOAT has been the more volatile fund, with annualized monthly volatility of 154573.1% 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 -96.0% for MOAT 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 -0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MOAT charges 0.46% per year while VYM charges 0.04%. On a $10,000 position that is $46 vs $4 annually, a gap of $42 per year that compounds over a long holding period. On income, MOAT currently yields 1.30% against 2.24% for VYM.
Holdings Overlap
MOAT and VYM share 23 holdings out of 635 unique holdings combined, representing a 6.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MOAT or VYM?
MOAT has an expense ratio of 0.46% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, MOAT or VYM?
Over the past year MOAT returned +16.49% vs +22.36% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), MOAT annualized +52.44% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, MOAT or VYM?
MOAT has been the more volatile fund at 154573.1% annualized versus 14.6% for VYM. Worst drawdown: MOAT -96.0% vs VYM -58.8%.
Should I hold both MOAT and VYM?
MOAT and VYM have a monthly-return correlation of -0.01, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MOAT and VYM?
MOAT and VYM share 23 common holdings with a 6.6% weight overlap. Combined, they hold 635 unique securities.
Which pays a higher dividend, MOAT or VYM?
MOAT yields 1.30% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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