OUSM vs VYM
O Shares US Small-Cap Quality Dividend 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 613 holdings.
Side-by-Side Comparison
| Metric | OUSM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.48% | 0.04% | |
| AUM | $851M | $81.6B | |
| Dividend Yield | 1.93% | 2.24% | |
| Holdings | 109 | 613 | |
| YTD Return | +11.42% | +14.18% | |
| 1Y Return | +10.16% | +20.67% | |
| 3Y Return (annualized) | +12.38% | +18.47% | |
| 5Y Return (annualized) | +7.93% | +12.01% | |
| Volatility (annualized) | 17.1% | 14.5% | |
| Max Drawdown | -40.0% | -58.8% | |
| Fund Family | ALPS Advisors | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 30, 2016 | Nov 10, 2006 |
OUSM vs VYM Performance
O Shares US Small-Cap Quality Dividend ETF (OUSM) is a ETF from ALPS Advisors and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year OUSM returned +10.16% while VYM returned +20.67%. Year to date, OUSM is up 11.42% versus a gain of 14.18% for VYM.
Over three years, OUSM compounded at +12.38% per year against +18.47% for VYM; over five years the annualized figures are +7.93% and +12.01% respectively. Across the full 10-year window we track, OUSM has the edge at +8.23% annualized vs +6.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
OUSM has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 14.5% 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 -40.0% for OUSM 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
OUSM charges 0.48% per year while VYM charges 0.04%. On a $10,000 position that is $48 vs $4 annually, a gap of $44 per year that compounds over a long holding period. On income, OUSM currently yields 1.93% against 2.24% for VYM.
Holdings Overlap
OUSM and VYM share 75 holdings out of 636 unique holdings combined, representing a 1.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, OUSM or VYM?
OUSM has an expense ratio of 0.48% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, OUSM or VYM?
Over the past year OUSM returned +10.16% vs +20.67% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), OUSM annualized +8.23% vs +6.97% for VYM. Past performance does not guarantee future results.
Which is riskier, OUSM or VYM?
OUSM has been the more volatile fund at 17.1% annualized versus 14.5% for VYM. Worst drawdown: OUSM -40.0% vs VYM -58.8%.
Should I hold both OUSM and VYM?
OUSM and VYM have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between OUSM and VYM?
OUSM and VYM share 75 common holdings with a 1.7% weight overlap. Combined, they hold 636 unique securities.
Which pays a higher dividend, OUSM or VYM?
OUSM yields 1.93% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.