SCZ vs VYM
iShares MSCI EAFE Small-Cap ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. SCZ offers more diversification with 2,080 holdings.
Side-by-Side Comparison
| Metric | SCZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.04% | |
| AUM | $13.5B | $81.6B | |
| Dividend Yield | 3.15% | 2.24% | |
| Holdings | 2,080 | 616 | |
| YTD Return | +12.97% | +16.42% | |
| 1Y Return | +19.95% | +24.22% | |
| 3Y Return (annualized) | +17.82% | +19.03% | |
| 5Y Return (annualized) | +5.79% | +12.21% | |
| Volatility (annualized) | 18.9% | 14.6% | |
| Max Drawdown | -62.6% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 10, 2007 | Nov 10, 2006 |
SCZ vs VYM Performance
iShares MSCI EAFE Small-Cap ETF (SCZ) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SCZ returned +19.95% while VYM returned +24.22%. Year to date, SCZ is up 12.97% versus a gain of 16.42% for VYM.
Over three years, SCZ compounded at +17.82% per year against +19.03% for VYM; over five years the annualized figures are +5.79% and +12.21% respectively. Across the full 19-year window we track, VYM has the edge at +7.10% annualized vs +3.78%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCZ has been the more volatile fund, with annualized monthly volatility of 18.9% 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 -62.6% for SCZ 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SCZ charges 0.40% per year while VYM charges 0.04%. On a $10,000 position that is $40 vs $4 annually, a gap of $36 per year that compounds over a long holding period. On income, SCZ currently yields 3.15% against 2.24% for VYM.
Holdings Overlap
SCZ and VYM share 1 holdings out of 2246 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in SCZ | Weight in VYM | Difference |
|---|---|---|---|
| RF | 0.05% | 0.11% | 0.06% |
Frequently Asked Questions
Which is cheaper, SCZ or VYM?
SCZ has an expense ratio of 0.40% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, SCZ or VYM?
Over the past year SCZ returned +19.95% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), SCZ annualized +3.78% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, SCZ or VYM?
SCZ has been the more volatile fund at 18.9% annualized versus 14.6% for VYM. Worst drawdown: SCZ -62.6% vs VYM -58.8%.
Should I hold both SCZ and VYM?
SCZ and VYM have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCZ and VYM?
SCZ and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 2246 unique securities.
Which pays a higher dividend, SCZ or VYM?
SCZ yields 3.15% while VYM yields 2.24%, so SCZ currently pays the higher dividend yield.
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