REIT vs VYM
ALPS Active REIT 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 558 holdings.
Side-by-Side Comparison
| Metric | REIT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.68% | 0.04% | |
| AUM | $59M | $79.0B | |
| Dividend Yield | 3.06% | 2.86% | |
| Holdings | 30 | 568 | |
| YTD Return | +16.02% | +16.16% | |
| 1Y Return | +20.72% | +26.05% | |
| 3Y Return (annualized) | +10.54% | +18.43% | |
| 5Y Return (annualized) | +4.19% | +12.21% | |
| Volatility (annualized) | 18.1% | 14.6% | |
| Max Drawdown | -29.3% | -58.8% | |
| Fund Family | ALPS Advisors | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 24, 2021 | Nov 10, 2006 |
REIT vs VYM Performance
ALPS Active REIT ETF (REIT) is a ETF from ALPS Advisors and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year REIT returned +20.72% while VYM returned +26.05%. Year to date, REIT is up 16.02% versus a gain of 16.16% for VYM.
Over three years, REIT compounded at +10.54% per year against +18.43% for VYM; over five years the annualized figures are +4.19% and +12.21% respectively. Across the full 6-year window we track, REIT has the edge at +7.45% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
REIT has been the more volatile fund, with annualized monthly volatility of 18.1% 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 -29.3% for REIT 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
REIT charges 0.68% per year while VYM charges 0.04%. On a $10,000 position that is $68 vs $4 annually, a gap of $64 per year that compounds over a long holding period. On income, REIT currently yields 3.06% against 2.86% for VYM.
Holdings Overlap
REIT and VYM share 0 holdings out of 587 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, REIT or VYM?
REIT has an expense ratio of 0.68% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $64 per year of difference.
Which performed better, REIT or VYM?
Over the past year REIT returned +20.72% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), REIT annualized +7.45% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, REIT or VYM?
REIT has been the more volatile fund at 18.1% annualized versus 14.6% for VYM. Worst drawdown: REIT -29.3% vs VYM -58.8%.
Should I hold both REIT and VYM?
REIT and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between REIT and VYM?
REIT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 587 unique securities.
Which pays a higher dividend, REIT or VYM?
REIT yields 3.06% while VYM yields 2.86%, so REIT currently pays the higher dividend yield.
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