SMLL vs VYM
Harbor Active Small Cap 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 | SMLL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.04% | |
| AUM | $14M | $79.0B | |
| Dividend Yield | 1.52% | 2.86% | |
| Holdings | 49 | 568 | |
| YTD Return | +12.12% | +16.78% | |
| 1Y Return | +2.31% | +24.43% | |
| 3Y Return (annualized) | - | +18.60% | |
| 5Y Return (annualized) | - | +12.30% | |
| Volatility (annualized) | 17.1% | 14.6% | |
| Max Drawdown | -23.6% | -58.8% | |
| Fund Family | Harbor Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 27, 2024 | Nov 10, 2006 |
SMLL vs VYM Performance
Harbor Active Small Cap ETF (SMLL) is a ETF from Harbor Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SMLL returned +2.31% while VYM returned +24.43%. Year to date, SMLL is up 12.12% versus a gain of 16.78% for VYM.
Risk: Volatility and Drawdowns
SMLL has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -23.6% for SMLL 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
SMLL charges 0.80% per year while VYM charges 0.04%. On a $10,000 position that is $80 vs $4 annually, a gap of $76 per year that compounds over a long holding period. On income, SMLL currently yields 1.52% against 2.86% for VYM.
Holdings Overlap
SMLL and VYM share 10 holdings out of 596 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SMLL or VYM?
SMLL has an expense ratio of 0.80% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, SMLL or VYM?
Over the past year SMLL returned +2.31% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), SMLL annualized +7.59% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, SMLL or VYM?
SMLL has been the more volatile fund at 17.1% annualized versus 14.6% for VYM. Worst drawdown: SMLL -23.6% vs VYM -58.8%.
Should I hold both SMLL and VYM?
SMLL and VYM have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SMLL and VYM?
SMLL and VYM share 10 common holdings with a 0.4% weight overlap. Combined, they hold 596 unique securities.
Which pays a higher dividend, SMLL or VYM?
SMLL yields 1.52% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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