RMT vs VYM
Royce Micro-Cap Trust Inc. vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. RMT delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | RMT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.35% | 0.04% | |
| AUM | $477M | $81.6B | |
| Dividend Yield | 5.36% | 2.24% | |
| Holdings | 176 | 616 | |
| YTD Return | +39.68% | +15.75% | |
| 1Y Return | +56.65% | +23.85% | |
| 3Y Return (annualized) | +26.99% | +19.14% | |
| 5Y Return (annualized) | +13.56% | +12.45% | |
| Volatility (annualized) | 23.5% | 14.6% | |
| Max Drawdown | -80.4% | -58.8% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 14, 1993 | Nov 10, 2006 |
RMT vs VYM Performance
Royce Micro-Cap Trust Inc. (RMT) is a ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RMT returned +56.65% while VYM returned +23.85%. Year to date, RMT is up 39.68% versus a gain of 15.75% for VYM.
Over three years, RMT compounded at +26.99% per year against +19.14% for VYM; over five years the annualized figures are +13.56% and +12.45% respectively. Across the full 20-year window we track, VYM has the edge at +7.06% annualized vs +2.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RMT has been the more volatile fund, with annualized monthly volatility of 23.5% 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 -80.4% for RMT 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RMT charges 1.35% per year while VYM charges 0.04%. On a $10,000 position that is $135 vs $4 annually, a gap of $131 per year that compounds over a long holding period. On income, RMT currently yields 5.36% against 2.24% for VYM.
Holdings Overlap
RMT and VYM share 0 holdings out of 777 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, RMT or VYM?
RMT has an expense ratio of 1.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $131 per year of difference.
Which performed better, RMT or VYM?
Over the past year RMT returned +56.65% vs +23.85% for VYM, so RMT leads on 1-year performance. Over the longest common window we track (20 years), RMT annualized +2.32% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, RMT or VYM?
RMT has been the more volatile fund at 23.5% annualized versus 14.6% for VYM. Worst drawdown: RMT -80.4% vs VYM -58.8%.
Should I hold both RMT and VYM?
RMT and VYM have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between RMT and VYM?
RMT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 777 unique securities.
Which pays a higher dividend, RMT or VYM?
RMT yields 5.36% while VYM yields 2.24%, so RMT currently pays the higher dividend yield.
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