MSTB vs VYM
LHA Market State Tactical Beta 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 | MSTB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.38% | 0.04% | |
| AUM | $192M | $79.0B | |
| Dividend Yield | 0.38% | 2.86% | |
| Holdings | 8 | 568 | |
| YTD Return | +10.85% | +16.16% | |
| 1Y Return | +16.71% | +26.05% | |
| 3Y Return (annualized) | +17.58% | +18.43% | |
| 5Y Return (annualized) | +7.99% | +12.21% | |
| Volatility (annualized) | 14.2% | 14.6% | |
| Max Drawdown | -25.6% | -58.8% | |
| Fund Family | Little Harbor Advisors | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 30, 2020 | Nov 10, 2006 |
MSTB vs VYM Performance
LHA Market State Tactical Beta ETF (MSTB) is a ETF from Little Harbor Advisors and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MSTB returned +16.71% while VYM returned +26.05%. Year to date, MSTB is up 10.85% versus a gain of 16.16% for VYM.
Over three years, MSTB compounded at +17.58% per year against +18.43% for VYM; over five years the annualized figures are +7.99% and +12.21% respectively. Across the full 6-year window we track, MSTB has the edge at +11.31% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.2% for MSTB. 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 -25.6% for MSTB 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MSTB charges 1.38% per year while VYM charges 0.04%. On a $10,000 position that is $138 vs $4 annually, a gap of $134 per year that compounds over a long holding period. On income, MSTB currently yields 0.38% against 2.86% for VYM.
Holdings Overlap
MSTB and VYM share 0 holdings out of 561 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, MSTB or VYM?
MSTB has an expense ratio of 1.38% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $134 per year of difference.
Which performed better, MSTB or VYM?
Over the past year MSTB returned +16.71% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), MSTB annualized +11.31% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, MSTB or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.2% for MSTB. Worst drawdown: MSTB -25.6% vs VYM -58.8%.
Should I hold both MSTB and VYM?
MSTB and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MSTB and VYM?
MSTB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 561 unique securities.
Which pays a higher dividend, MSTB or VYM?
MSTB yields 0.38% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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