SMB vs VYM
VanEck Short Muni 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 | SMB | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.04% | |
| AUM | $312M | $79.0B | |
| Dividend Yield | 2.69% | 2.86% | |
| Holdings | 333 | 568 | |
| YTD Return | -0.86% | +16.16% | |
| 1Y Return | +0.54% | +26.05% | |
| 3Y Return (annualized) | +2.88% | +18.43% | |
| 5Y Return (annualized) | +0.85% | +12.21% | |
| Volatility (annualized) | 20.6% | 14.6% | |
| Max Drawdown | -29.3% | -58.8% | |
| Fund Family | VanEck | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 22, 2008 | Nov 10, 2006 |
SMB vs VYM Performance
VanEck Short Muni ETF (SMB) is a ETF from VanEck and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SMB returned +0.54% while VYM returned +26.05%. Year to date, SMB is down 0.86% versus a gain of 16.16% for VYM.
Over three years, SMB compounded at +2.88% per year against +18.43% for VYM; over five years the annualized figures are +0.85% and +12.21% respectively. Across the full 19-year window we track, VYM has the edge at +7.09% annualized vs +1.88%. 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 14.6% 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 -29.3% for SMB 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 -0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
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 2.69% against 2.86% for VYM.
Holdings Overlap
SMB and VYM share 0 holdings out of 735 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, SMB or VYM?
SMB has an expense ratio of 0.07% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, SMB or VYM?
Over the past year SMB returned +0.54% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), SMB annualized +1.88% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, SMB or VYM?
SMB has been the more volatile fund at 20.6% annualized versus 14.6% for VYM. Worst drawdown: SMB -29.3% vs VYM -58.8%.
Should I hold both SMB and VYM?
SMB and VYM have a monthly-return correlation of -0.01, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SMB and VYM?
SMB and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 735 unique securities.
Which pays a higher dividend, SMB or VYM?
SMB yields 2.69% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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