SMB vs VYM
VanEck Short Muni ETF vs Vanguard High Dividend Yield ETF
Which is better, SMB or VYM?
Municipal Bond against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SMB | VYM |
|---|---|---|
| Expense Ratio | 0.07% | 0.04%Best |
| AUM | $312M | $81.6B |
| Dividend Yield | 2.77% | 2.22% |
| Holdings | 326 | 613 |
| YTD Return | -2.10% | +13.91%Best |
| 1Y Return | -1.50% | +17.57%Best |
| 3Y Return (annualized) | +2.40% | +18.12%Best |
| 5Y Return (annualized) | +0.57% | +12.17%Best |
| Volatility (annualized) | 20.6% | 14.8%Best |
| Max Drawdown | -29.3%Best | -53.6% |
| $10,000 over 5 years | $10,288 | $17,758Best |
| Fund Family | VanEck | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Value |
| Inception | Feb 22, 2008 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 26, 2008 to Sep 11, 2026 (18.5 years).
SMB vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 18.5 years both funds cover.
SMB vs VYM Performance
VanEck Short Muni ETF (SMB) is an ETF from VanEck and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year SMB returned -1.50% while VYM returned +17.57%. Year to date, SMB is down 2.10% versus a gain of 13.91% for VYM.
Over three years, SMB compounded at +2.40% per year against +18.12% for VYM; over five years the annualized figures are +0.57% and +12.17% respectively. Across the full 19-year window we track, VYM has the edge at +7.62% annualized vs +1.80%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMB has been the more volatile fund, with annualized monthly volatility of 20.6% compared with 14.8% 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 -29.3% for SMB and -53.6% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at -0.01. They move largely independently of each other.
Fees and Cost Over Time
SMB charges 0.07% per year while VYM charges 0.04%. On a $10,000 position that is $7 vs $4 annually, a gap of $3 per year that compounds over a long holding period. On income, SMB currently yields 2.77% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 178 holdings in SMB and 603 in VYM, totalling 56.0% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 178 positions we hold weights for in SMB and 603 in VYM, against full books of 326 and 613.
You are not choosing between two funds in isolation.
Whichever of SMB and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SMB or VYM?
SMB has an expense ratio of 0.07% while VYM charges 0.04%. VYM is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, SMB or VYM?
Over the past year SMB returned -1.50% vs +17.57% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), SMB annualized +1.80% vs +7.62% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SMB or VYM?
SMB has been the more volatile fund at 20.6% annualized versus 14.8% for VYM. Worst drawdown: SMB -29.3% vs VYM -53.6%.
Should I hold both SMB and VYM?
SMB and VYM have a monthly-return correlation of -0.01, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, SMB or VYM?
SMB yields 2.77% while VYM yields 2.22%, so SMB currently pays the higher dividend yield.
Is VYM better than SMB?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.