SMLF vs VYM
iShares US Small-Cap Equity Factor ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. SMLF delivered stronger 1-year returns. SMLF offers more diversification with 934 holdings.
Side-by-Side Comparison
| Metric | SMLF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $4.3B | $81.6B | |
| Dividend Yield | 1.02% | 2.24% | |
| Holdings | 934 | 613 | |
| YTD Return | +15.71% | +14.87% | |
| 1Y Return | +21.44% | +21.39% | |
| 3Y Return (annualized) | +18.66% | +18.69% | |
| 5Y Return (annualized) | +10.53% | +11.98% | |
| Volatility (annualized) | 18.9% | 14.5% | |
| Max Drawdown | -43.1% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 28, 2015 | Nov 10, 2006 |
SMLF vs VYM Performance
iShares US Small-Cap Equity Factor ETF (SMLF) 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 SMLF returned +21.44% while VYM returned +21.39%. Year to date, SMLF is up 15.71% versus a gain of 14.87% for VYM.
Over three years, SMLF compounded at +18.66% per year against +18.69% for VYM; over five years the annualized figures are +10.53% and +11.98% respectively. Across the full 11-year window we track, SMLF has the edge at +10.82% annualized vs +7.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMLF has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 14.5% 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 -43.1% for SMLF 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SMLF charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, SMLF currently yields 1.02% against 2.24% for VYM.
Holdings Overlap
SMLF and VYM share 200 holdings out of 1265 unique holdings combined, representing a 5.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SMLF or VYM?
SMLF has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, SMLF or VYM?
Over the past year SMLF returned +21.44% vs +21.39% for VYM, so SMLF leads on 1-year performance. Over the longest common window we track (11 years), SMLF annualized +10.82% vs +7.00% for VYM. Past performance does not guarantee future results.
Which is riskier, SMLF or VYM?
SMLF has been the more volatile fund at 18.9% annualized versus 14.5% for VYM. Worst drawdown: SMLF -43.1% vs VYM -58.8%.
Should I hold both SMLF and VYM?
SMLF and VYM have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SMLF and VYM?
SMLF and VYM share 200 common holdings with a 5.0% weight overlap. Combined, they hold 1265 unique securities.
Which pays a higher dividend, SMLF or VYM?
SMLF yields 1.02% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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