MSFO vs VYM
YieldMax Microsoft Option Income Strategy 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 558 holdings.
Side-by-Side Comparison
| Metric | MSFO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.07% | 0.04% | |
| AUM | $100M | $79.0B | |
| Dividend Yield | 42.88% | 2.86% | |
| Holdings | 15 | 568 | |
| YTD Return | +3.94% | +16.16% | |
| 1Y Return | -2.82% | +26.05% | |
| 3Y Return (annualized) | +15.65% | +18.43% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 23.8% | 14.6% | |
| Max Drawdown | -29.7% | -58.8% | |
| Fund Family | YieldMax ETF | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 24, 2023 | Nov 10, 2006 |
MSFO vs VYM Performance
YieldMax Microsoft Option Income Strategy ETF (MSFO) is a ETF from YieldMax ETF and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MSFO returned -2.82% while VYM returned +26.05%. Year to date, MSFO is up 3.94% versus a gain of 16.16% for VYM.
Over three years, MSFO compounded at +15.65% per year against +18.43% for VYM. Across the full 3-year window we track, MSFO has the edge at +15.65% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MSFO has been the more volatile fund, with annualized monthly volatility of 23.8% 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 -29.7% for MSFO 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MSFO charges 1.07% per year while VYM charges 0.04%. On a $10,000 position that is $107 vs $4 annually, a gap of $103 per year that compounds over a long holding period. On income, MSFO currently yields 42.88% against 2.86% for VYM.
Holdings Overlap
MSFO and VYM share 0 holdings out of 560 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MSFO or VYM?
MSFO has an expense ratio of 1.07% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $103 per year of difference.
Which performed better, MSFO or VYM?
Over the past year MSFO returned -2.82% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), MSFO annualized +15.65% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, MSFO or VYM?
MSFO has been the more volatile fund at 23.8% annualized versus 14.6% for VYM. Worst drawdown: MSFO -29.7% vs VYM -58.8%.
Should I hold both MSFO and VYM?
MSFO and VYM have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSFO and VYM?
MSFO and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 560 unique securities.
Which pays a higher dividend, MSFO or VYM?
MSFO yields 42.88% while VYM yields 2.86%, so MSFO currently pays the higher dividend yield.
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