RAUS vs VYM
RACWI US ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
RAUS has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 613 holdings.
Side-by-Side Comparison
| Metric | RAUS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.00% | 0.04% | |
| AUM | $59M | $81.6B | |
| Dividend Yield | 0.22% | 2.24% | |
| Holdings | 520 | 613 | |
| YTD Return | +12.88% | +14.18% | |
| 1Y Return | +18.48% | +20.67% | |
| 3Y Return (annualized) | - | +18.47% | |
| 5Y Return (annualized) | - | +12.01% | |
| Volatility (annualized) | 13.0% | 14.5% | |
| Max Drawdown | -8.6% | -58.8% | |
| Fund Family | RAFI Indices | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 11, 2025 | Nov 10, 2006 |
RAUS vs VYM Performance
RACWI US ETF (RAUS) is a ETF from RAFI Indices and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RAUS returned +18.48% while VYM returned +20.67%. Year to date, RAUS is up 12.88% versus a gain of 14.18% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 13.0% for RAUS. 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 -8.6% for RAUS 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RAUS charges 0.00% per year while VYM charges 0.04%. On a $10,000 position that is $0 vs $4 annually, a gap of $4 per year that compounds over a long holding period. On income, RAUS currently yields 0.22% against 2.24% for VYM.
Holdings Overlap
RAUS and VYM share 277 holdings out of 841 unique holdings combined, representing a 34.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RAUS or VYM?
RAUS has an expense ratio of 0.00% while VYM charges 0.04%. RAUS is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, RAUS or VYM?
Over the past year RAUS returned +18.48% vs +20.67% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results.
Which is riskier, RAUS or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 13.0% for RAUS. Worst drawdown: RAUS -8.6% vs VYM -58.8%.
Should I hold both RAUS and VYM?
RAUS and VYM have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RAUS and VYM?
RAUS and VYM share 277 common holdings with a 34.8% weight overlap. Combined, they hold 841 unique securities.
Which pays a higher dividend, RAUS or VYM?
RAUS yields 0.22% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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