QSML vs VYM
WisdomTree US SmallCap Quality Growth Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. QSML delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | QSML | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.04% | |
| AUM | $12M | $79.0B | |
| Dividend Yield | 0.54% | 2.86% | |
| Holdings | 391 | 568 | |
| YTD Return | +21.04% | +15.80% | |
| 1Y Return | +32.06% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 17.8% | 14.6% | |
| Max Drawdown | -28.3% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 25, 2024 | Nov 10, 2006 |
QSML vs VYM Performance
WisdomTree US SmallCap Quality Growth Fund (QSML) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year QSML returned +32.06% while VYM returned +26.12%. Year to date, QSML is up 21.04% versus a gain of 15.80% for VYM.
Risk: Volatility and Drawdowns
QSML has been the more volatile fund, with annualized monthly volatility of 17.8% 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 -28.3% for QSML 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QSML charges 0.38% per year while VYM charges 0.04%. On a $10,000 position that is $38 vs $4 annually, a gap of $34 per year that compounds over a long holding period. On income, QSML currently yields 0.54% against 2.86% for VYM.
Holdings Overlap
QSML and VYM share 47 holdings out of 898 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QSML or VYM?
QSML has an expense ratio of 0.38% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, QSML or VYM?
Over the past year QSML returned +32.06% vs +26.12% for VYM, so QSML leads on 1-year performance. Over the longest common window we track (3 years), QSML annualized +14.77% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, QSML or VYM?
QSML has been the more volatile fund at 17.8% annualized versus 14.6% for VYM. Worst drawdown: QSML -28.3% vs VYM -58.8%.
Should I hold both QSML and VYM?
QSML and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QSML and VYM?
QSML and VYM share 47 common holdings with a 0.7% weight overlap. Combined, they hold 898 unique securities.
Which pays a higher dividend, QSML or VYM?
QSML yields 0.54% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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