OPTZ vs VYM
Optimize Strategy Index ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. OPTZ delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | OPTZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.04% | |
| AUM | $255M | $79.0B | |
| Dividend Yield | 0.42% | 2.86% | |
| Holdings | 336 | 568 | |
| YTD Return | +29.03% | +15.80% | |
| 1Y Return | +45.52% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 19.4% | 14.6% | |
| Max Drawdown | -25.5% | -58.8% | |
| Fund Family | Optimize Financial | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 23, 2024 | Nov 10, 2006 |
OPTZ vs VYM Performance
Optimize Strategy Index ETF (OPTZ) is a ETF from Optimize Financial and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year OPTZ returned +45.52% while VYM returned +26.12%. Year to date, OPTZ is up 29.03% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
OPTZ has been the more volatile fund, with annualized monthly volatility of 19.4% 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 -25.5% for OPTZ 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
OPTZ charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, OPTZ currently yields 0.42% against 2.86% for VYM.
Holdings Overlap
OPTZ and VYM share 100 holdings out of 792 unique holdings combined, representing a 11.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, OPTZ or VYM?
OPTZ has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, OPTZ or VYM?
Over the past year OPTZ returned +45.52% vs +26.12% for VYM, so OPTZ leads on 1-year performance. Over the longest common window we track (2 years), OPTZ annualized +31.47% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, OPTZ or VYM?
OPTZ has been the more volatile fund at 19.4% annualized versus 14.6% for VYM. Worst drawdown: OPTZ -25.5% vs VYM -58.8%.
Should I hold both OPTZ and VYM?
OPTZ and VYM have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between OPTZ and VYM?
OPTZ and VYM share 100 common holdings with a 11.6% weight overlap. Combined, they hold 792 unique securities.
Which pays a higher dividend, OPTZ or VYM?
OPTZ yields 0.42% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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