RZG vs VYM
Invesco S&P Smallcap 600 Pure Growth ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. RZG delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | RZG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $138M | $81.6B | |
| Dividend Yield | 0.44% | 2.24% | |
| Holdings | 129 | 616 | |
| YTD Return | +25.61% | +15.34% | |
| 1Y Return | +31.37% | +23.24% | |
| 3Y Return (annualized) | +18.89% | +19.22% | |
| 5Y Return (annualized) | +5.95% | +12.21% | |
| Volatility (annualized) | 21.6% | 14.6% | |
| Max Drawdown | -58.8% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 1, 2006 | Nov 10, 2006 |
RZG vs VYM Performance
Invesco S&P Smallcap 600 Pure Growth ETF (RZG) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RZG returned +31.37% while VYM returned +23.24%. Year to date, RZG is up 25.61% versus a gain of 15.34% for VYM.
Over three years, RZG compounded at +18.89% per year against +19.22% for VYM; over five years the annualized figures are +5.95% and +12.21% respectively. Across the full 20-year window we track, RZG has the edge at +8.82% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RZG has been the more volatile fund, with annualized monthly volatility of 21.6% 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 -58.8% for RZG 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
RZG charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, RZG currently yields 0.44% against 2.24% for VYM.
Holdings Overlap
RZG and VYM share 9 holdings out of 720 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RZG or VYM?
RZG has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, RZG or VYM?
Over the past year RZG returned +31.37% vs +23.24% for VYM, so RZG leads on 1-year performance. Over the longest common window we track (20 years), RZG annualized +8.82% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, RZG or VYM?
RZG has been the more volatile fund at 21.6% annualized versus 14.6% for VYM. Worst drawdown: RZG -58.8% vs VYM -58.8%.
Should I hold both RZG and VYM?
RZG 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 RZG and VYM?
RZG and VYM share 9 common holdings with a 0.1% weight overlap. Combined, they hold 720 unique securities.
Which pays a higher dividend, RZG or VYM?
RZG yields 0.44% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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