QLTY vs VYM
GMO US Quality ETF vs Vanguard High Dividend Yield ETF
Which is better, QLTY or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. QLTY led over 1Y, 3Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 44.9%.
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 | QLTY | VYM |
|---|---|---|
| Expense Ratio | 0.50% | 0.04%Best |
| AUM | $5.2B | $83.1B |
| Dividend Yield | 0.70% | 2.22% |
| Holdings | 90 | 608 |
| YTD Return | +14.23%Best | +11.61% |
| 1Y Return | +19.88%Best | +15.90% |
| 3Y Return (annualized) | +21.99%Best | +18.72% |
| 5Y Return (annualized) | - | +11.76% |
| Volatility (annualized) | 11.9% | 10.7%Best |
| Max Drawdown | -17.0% | -14.5%Best |
| $10,000 over 2.9 years | $17,797Best | $16,388 |
| Top 10 Weight | 44.9% | 26.1%Best |
| Fund Family | GMO | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Nov 13, 2023 | Nov 10, 2006 |
Volatility and max drawdown, and the $10,000 over 2.9 years row, are measured over the window both funds cover: Nov 15, 2023 to Oct 9, 2026 (2.9 years).
QLTY 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 2.9 years both funds cover.
QLTY vs VYM Performance
GMO US Quality ETF (QLTY) is an ETF from GMO and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year QLTY returned +19.88% while VYM returned +15.90%. Year to date, QLTY is up 14.23% versus a gain of 11.61% for VYM.
Over three years, QLTY compounded at +21.99% per year against +18.72% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QLTY has been the more volatile fund, with annualized monthly volatility of 11.9% compared with 10.7% 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 -17.0% for QLTY 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QLTY charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, QLTY currently yields 0.70% against 2.22% for VYM.
Holdings Overlap
31.7% of QLTY's money is in holdings VYM also owns. 19.7% of VYM's money is in holdings QLTY also owns.
The two portfolios partly overlap.
The two holdings books were reported 47 days apart, QLTY as of Sep 16, 2026 and VYM as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
16 positions in common, counted across the 44 positions we hold weights for in QLTY and 557 in VYM, against full books of 90 and 608.
What only one of them owns
Our book lists 512 positions for VYM that do not appear in our book for QLTY (77.4% of the fund), and 28 for QLTY that do not appear in VYM (68.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QLTY | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 3.50% | 7.35% | 3.85% |
| JNJJohnson & Johnson - Common | 4.50% | 2.51% | 1.99% |
| TXNTexas Instrument Inc | 3.50% | 1.02% | 2.48% |
| UNHUnitedhealth Group Incorporated | 2.50% | 1.52% | 0.98% |
| PGProcter & Gamble Company | 2.10% | 1.37% | 0.73% |
| KOCoca Cola Co. | 1.90% | 1.38% | 0.52% |
| ABTAbbott Laboratories | 2.40% | 0.74% | 1.66% |
| MRKMerck & Company Inc | 1.60% | 1.31% | 0.29% |
| USBUS Bancorp | 1.90% | 0.40% | 1.50% |
| PMPhilip Morris International Inc. | 1.00% | 1.21% | 0.21% |
31.7% of QLTY is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QLTY or VYM?
QLTY has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option, by $46 a year on a $10,000 investment.
Which performed better, QLTY or VYM?
Over the past year QLTY returned +19.88% vs +15.90% for VYM, so QLTY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QLTY or VYM?
QLTY has been the more volatile fund at 11.9% annualized versus 10.7% for VYM. Worst drawdown: QLTY -17.0% vs VYM -14.5%.
Should I hold both QLTY and VYM?
QLTY and VYM have a monthly-return correlation of 0.70, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QLTY and VYM?
31.7% of QLTY's money is in holdings VYM also owns. 19.7% of VYM's is in holdings QLTY also owns. They hold 16 positions in common, counted across the 44 positions we hold weights for in QLTY and 557 in VYM.
Which pays a higher dividend, QLTY or VYM?
QLTY yields 0.70% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than QLTY?
VYM has a lower expense ratio. QLTY led over 1Y, 3Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 44.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.