SCD vs VYM
LMP Capital and Income Fund Inc. 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 | SCD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.67% | 0.04% | |
| AUM | $410M | $81.6B | |
| Dividend Yield | 8.30% | 2.24% | |
| Holdings | 158 | 616 | |
| YTD Return | +10.87% | +14.84% | |
| 1Y Return | +10.28% | +20.88% | |
| 3Y Return (annualized) | +16.63% | +18.34% | |
| 5Y Return (annualized) | +11.08% | +12.04% | |
| Volatility (annualized) | 20.9% | 14.6% | |
| Max Drawdown | -71.3% | -58.8% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 24, 2004 | Nov 10, 2006 |
SCD vs VYM Performance
LMP Capital and Income Fund Inc. (SCD) 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 SCD returned +10.28% while VYM returned +20.88%. Year to date, SCD is up 10.87% versus a gain of 14.84% for VYM.
Over three years, SCD compounded at +16.63% per year against +18.34% for VYM; over five years the annualized figures are +11.08% and +12.04% respectively. Across the full 20-year window we track, VYM has the edge at +7.01% annualized vs +1.18%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCD has been the more volatile fund, with annualized monthly volatility of 20.9% 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 -71.3% for SCD 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCD charges 2.67% per year while VYM charges 0.04%. On a $10,000 position that is $267 vs $4 annually, a gap of $263 per year that compounds over a long holding period. On income, SCD currently yields 8.30% against 2.24% for VYM.
Holdings Overlap
SCD and VYM share 34 holdings out of 707 unique holdings combined, representing a 23.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCD or VYM?
SCD has an expense ratio of 2.67% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $263 per year of difference.
Which performed better, SCD or VYM?
Over the past year SCD returned +10.28% vs +20.88% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), SCD annualized +1.18% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, SCD or VYM?
SCD has been the more volatile fund at 20.9% annualized versus 14.6% for VYM. Worst drawdown: SCD -71.3% vs VYM -58.8%.
Should I hold both SCD and VYM?
SCD and VYM have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCD and VYM?
SCD and VYM share 34 common holdings with a 23.7% weight overlap. Combined, they hold 707 unique securities.
Which pays a higher dividend, SCD or VYM?
SCD yields 8.30% while VYM yields 2.24%, so SCD currently pays the higher dividend yield.
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