MSTI vs VYM
Madison Short-Term Strategic Income ETF vs Vanguard High Dividend Yield ETF
Which is better, MSTI or VYM?
Short Term High Quality against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | MSTI | VYM |
|---|---|---|
| Expense Ratio | 0.36% | 0.04%Best |
| AUM | $49M | $81.6B |
| Dividend Yield | 5.41% | 2.22% |
| Holdings | 98 | 613 |
| YTD Return | +0.39% | +13.15%Best |
| 1Y Return | +1.97% | +17.82%Best |
| 3Y Return (annualized) | +5.49% | +17.99%Best |
| 5Y Return (annualized) | - | +12.16% |
| Volatility (annualized) | 2.5%Best | 10.7% |
| Max Drawdown | -1.5%Best | -14.5% |
| $10,000 over 3 years | $11,739 | $16,489Best |
| Fund Family | Madison Funds | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Short Term High Quality | Large Cap Value |
| Inception | Sep 5, 2023 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Sep 6, 2023 to Sep 10, 2026 (3 years).
MSTI vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3 years both funds cover.
MSTI vs VYM Performance
Madison Short-Term Strategic Income ETF (MSTI) is an ETF from Madison Funds and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year MSTI returned +1.97% while VYM returned +17.82%. Year to date, MSTI is up 0.39% versus a gain of 13.15% for VYM.
Over three years, MSTI compounded at +5.49% per year against +17.99% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 10.7% compared with 2.5% for MSTI. 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 -1.5% for MSTI and -14.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.57. They move together some of the time, and apart the rest.
Fees and Cost Over Time
MSTI charges 0.36% per year while VYM charges 0.04%. On a $10,000 position that is $36 vs $4 annually, a gap of $32 per year that compounds over a long holding period. On income, MSTI currently yields 5.41% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 68 holdings in MSTI and 603 in VYM, totalling 63.7% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 48 days apart, MSTI as of Aug 17, 2026 and VYM as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 68 positions we hold weights for in MSTI and 603 in VYM, against full books of 98 and 613.
You are not choosing between two funds in isolation.
Whichever of MSTI and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MSTI or VYM?
MSTI has an expense ratio of 0.36% while VYM charges 0.04%. VYM is the cheaper option, by $32 a year on a $10,000 investment.
Which performed better, MSTI or VYM?
Over the past year MSTI returned +1.97% vs +17.82% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MSTI or VYM?
VYM has been the more volatile fund at 10.7% annualized versus 2.5% for MSTI. Worst drawdown: MSTI -1.5% vs VYM -14.5%.
Should I hold both MSTI and VYM?
MSTI and VYM have a monthly-return correlation of 0.57, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, MSTI or VYM?
MSTI yields 5.41% while VYM yields 2.22%, so MSTI currently pays the higher dividend yield.
Is VYM better than MSTI?
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.