SHYM vs VYM
iShares Short Duration High Yield Muni Active ETF 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 558 holdings.
Side-by-Side Comparison
| Metric | SHYM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.04% | |
| AUM | $799M | $79.0B | |
| Dividend Yield | 4.28% | 2.86% | |
| Holdings | 421 | 568 | |
| YTD Return | -0.34% | +16.16% | |
| 1Y Return | +2.09% | +26.05% | |
| 3Y Return (annualized) | +1.14% | +18.43% | |
| 5Y Return (annualized) | -3.72% | +12.21% | |
| Volatility (annualized) | 9.0% | 14.6% | |
| Max Drawdown | -26.4% | -58.8% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 16, 2021 | Nov 10, 2006 |
SHYM vs VYM Performance
iShares Short Duration High Yield Muni Active ETF (SHYM) is a ETF from BlackRock, Inc. (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SHYM returned +2.09% while VYM returned +26.05%. Year to date, SHYM is down 0.34% versus a gain of 16.16% for VYM.
Over three years, SHYM compounded at +1.14% per year against +18.43% for VYM; over five years the annualized figures are -3.72% and +12.21% respectively. Across the full 5-year window we track, VYM has the edge at +7.09% annualized vs -2.33%. 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 9.0% for SHYM. 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 -26.4% for SHYM 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SHYM 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, SHYM currently yields 4.28% against 2.86% for VYM.
Holdings Overlap
SHYM and VYM share 0 holdings out of 672 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, SHYM or VYM?
SHYM 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, SHYM or VYM?
Over the past year SHYM returned +2.09% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), SHYM annualized -2.33% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, SHYM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 9.0% for SHYM. Worst drawdown: SHYM -26.4% vs VYM -58.8%.
Should I hold both SHYM and VYM?
SHYM and VYM have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SHYM and VYM?
SHYM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 672 unique securities.
Which pays a higher dividend, SHYM or VYM?
SHYM yields 4.28% while VYM yields 2.86%, so SHYM currently pays the higher dividend yield.
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