SIO vs VYM
Touchstone Strategic Income 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 | SIO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $279M | $79.0B | |
| Dividend Yield | 4.77% | 2.86% | |
| Holdings | 205 | 568 | |
| YTD Return | +0.65% | +16.10% | |
| 1Y Return | +3.54% | +25.99% | |
| 3Y Return (annualized) | +7.03% | +18.29% | |
| 5Y Return (annualized) | - | +12.35% | |
| Volatility (annualized) | 5.7% | 14.6% | |
| Max Drawdown | -7.3% | -58.8% | |
| Fund Family | Touchstone Investments | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 21, 2022 | Nov 10, 2006 |
SIO vs VYM Performance
Touchstone Strategic Income ETF (SIO) is a ETF from Touchstone Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SIO returned +3.54% while VYM returned +25.99%. Year to date, SIO is up 0.65% versus a gain of 16.10% for VYM.
Over three years, SIO compounded at +7.03% per year against +18.29% for VYM. Across the full 4-year window we track, VYM has the edge at +7.08% annualized vs +5.90%. 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 5.7% for SIO. 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 -7.3% for SIO 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SIO 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, SIO currently yields 4.77% against 2.86% for VYM.
Holdings Overlap
SIO and VYM share 11 holdings out of 669 unique holdings combined, representing a 3.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SIO or VYM?
SIO 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, SIO or VYM?
Over the past year SIO returned +3.54% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), SIO annualized +5.90% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, SIO or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.7% for SIO. Worst drawdown: SIO -7.3% vs VYM -58.8%.
Should I hold both SIO and VYM?
SIO and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SIO and VYM?
SIO and VYM share 11 common holdings with a 3.8% weight overlap. Combined, they hold 669 unique securities.
Which pays a higher dividend, SIO or VYM?
SIO yields 4.77% while VYM yields 2.86%, so SIO currently pays the higher dividend yield.
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