SDG vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricSDGVYMWinner
Expense Ratio0.50%0.04%
AUM$168M$79.0B
Dividend Yield1.69%2.86%
Holdings147568
YTD Return+8.02%+16.16%
1Y Return+16.46%+26.05%
3Y Return (annualized)+6.87%+18.43%
5Y Return (annualized)+0.19%+12.21%
Volatility (annualized)14.4%14.6%
Max Drawdown-30.4%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionApr 20, 2016Nov 10, 2006

SDG vs VYM Performance

iShares MSCI Global Sustainable Development Goals ETF (SDG) 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 SDG returned +16.46% while VYM returned +26.05%. Year to date, SDG is up 8.02% versus a gain of 16.16% for VYM.

Over three years, SDG compounded at +6.87% per year against +18.43% for VYM; over five years the annualized figures are +0.19% and +12.21% respectively. Across the full 10-year window we track, SDG has the edge at +7.39% annualized vs +7.09%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.4% for SDG. 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 -30.4% for SDG 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 0.72. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SDG charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, SDG currently yields 1.69% against 2.86% for VYM.

Holdings Overlap

0.2%overlap

SDG and VYM share 2 holdings out of 673 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SDGWeight in VYMDifference
KMB3.34%0.16%3.18%
MAS1.71%0.07%1.64%

Frequently Asked Questions

Which is cheaper, SDG or VYM?

SDG has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.

Which performed better, SDG or VYM?

Over the past year SDG returned +16.46% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), SDG annualized +7.39% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, SDG or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 14.4% for SDG. Worst drawdown: SDG -30.4% vs VYM -58.8%.

Should I hold both SDG and VYM?

SDG and VYM have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SDG and VYM?

SDG and VYM share 2 common holdings with a 0.2% weight overlap. Combined, they hold 673 unique securities.

Which pays a higher dividend, SDG or VYM?

SDG yields 1.69% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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