RAYJ vs VYM
Rayliant SMDAM Japan Equity 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 616 holdings.
Side-by-Side Comparison
| Metric | RAYJ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.04% | |
| AUM | $24M | $81.6B | |
| Dividend Yield | 4.76% | 2.24% | |
| Holdings | 34 | 616 | |
| YTD Return | +15.34% | +15.75% | |
| 1Y Return | +23.69% | +23.85% | |
| 3Y Return (annualized) | - | +19.14% | |
| 5Y Return (annualized) | - | +12.45% | |
| Volatility (annualized) | 20.6% | 14.6% | |
| Max Drawdown | -16.6% | -58.8% | |
| Fund Family | Rayliant Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 4, 2024 | Nov 10, 2006 |
RAYJ vs VYM Performance
Rayliant SMDAM Japan Equity ETF (RAYJ) is a ETF from Rayliant Asset Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RAYJ returned +23.69% while VYM returned +23.85%. Year to date, RAYJ is up 15.34% versus a gain of 15.75% for VYM.
Risk: Volatility and Drawdowns
RAYJ has been the more volatile fund, with annualized monthly volatility of 20.6% 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 -16.6% for RAYJ 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
RAYJ charges 0.72% per year while VYM charges 0.04%. On a $10,000 position that is $72 vs $4 annually, a gap of $68 per year that compounds over a long holding period. On income, RAYJ currently yields 4.76% against 2.24% for VYM.
Holdings Overlap
RAYJ and VYM share 0 holdings out of 635 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RAYJ or VYM?
RAYJ has an expense ratio of 0.72% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $68 per year of difference.
Which performed better, RAYJ or VYM?
Over the past year RAYJ returned +23.69% vs +23.85% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), RAYJ annualized +20.92% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, RAYJ or VYM?
RAYJ has been the more volatile fund at 20.6% annualized versus 14.6% for VYM. Worst drawdown: RAYJ -16.6% vs VYM -58.8%.
Should I hold both RAYJ and VYM?
RAYJ and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RAYJ and VYM?
RAYJ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 635 unique securities.
Which pays a higher dividend, RAYJ or VYM?
RAYJ yields 4.76% while VYM yields 2.24%, so RAYJ currently pays the higher dividend yield.
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