MSTY vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricMSTYVYMWinner
Expense Ratio1.03%0.04%
AUM$760M$79.0B
Dividend Yield139.35%2.86%
Holdings21568
YTD Return-32.86%+15.80%
1Y Return-69.72%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)78.6%14.6%
Max Drawdown-77.4%-58.8%
Fund FamilyYieldMax ETFVanguard (US)
CategoryAlternativeEquity
InceptionFeb 21, 2024Nov 10, 2006

MSTY vs VYM Performance

YieldMax MSTR Option Income Strategy ETF (MSTY) is a ETF from YieldMax ETF and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MSTY returned -69.72% while VYM returned +26.12%. Year to date, MSTY is down 32.86% versus a gain of 15.80% for VYM.

Risk: Volatility and Drawdowns

MSTY has been the more volatile fund, with annualized monthly volatility of 78.6% 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 -77.4% for MSTY 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MSTY charges 1.03% per year while VYM charges 0.04%. On a $10,000 position that is $103 vs $4 annually, a gap of $99 per year that compounds over a long holding period. On income, MSTY currently yields 139.35% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

MSTY 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, MSTY or VYM?

MSTY has an expense ratio of 1.03% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $99 per year of difference.

Which performed better, MSTY or VYM?

Over the past year MSTY returned -69.72% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), MSTY annualized +7.31% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, MSTY or VYM?

MSTY has been the more volatile fund at 78.6% annualized versus 14.6% for VYM. Worst drawdown: MSTY -77.4% vs VYM -58.8%.

Should I hold both MSTY and VYM?

MSTY and VYM have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MSTY and VYM?

MSTY and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 561 unique securities.

Which pays a higher dividend, MSTY or VYM?

MSTY yields 139.35% while VYM yields 2.86%, so MSTY currently pays the higher dividend yield.

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