SMMD vs VYM
iShares Russell 2500 ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. SMMD delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | SMMD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $3.6B | $79.0B | |
| Dividend Yield | 1.05% | 2.86% | |
| Holdings | 520 | 568 | |
| YTD Return | +22.88% | +16.78% | |
| 1Y Return | +30.81% | +24.43% | |
| 3Y Return (annualized) | +18.30% | +18.60% | |
| 5Y Return (annualized) | +8.81% | +12.30% | |
| Volatility (annualized) | 20.5% | 14.6% | |
| Max Drawdown | -41.1% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 6, 2017 | Nov 10, 2006 |
SMMD vs VYM Performance
iShares Russell 2500 ETF (SMMD) 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 SMMD returned +30.81% while VYM returned +24.43%. Year to date, SMMD is up 22.88% versus a gain of 16.78% for VYM.
Over three years, SMMD compounded at +18.30% per year against +18.60% for VYM; over five years the annualized figures are +8.81% and +12.30% respectively. Across the full 9-year window we track, SMMD has the edge at +10.71% annualized vs +7.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMMD has been the more volatile fund, with annualized monthly volatility of 20.5% 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 -41.1% for SMMD 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
SMMD 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, SMMD currently yields 1.05% against 2.86% for VYM.
Holdings Overlap
SMMD and VYM share 12 holdings out of 577 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SMMD or VYM?
SMMD 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, SMMD or VYM?
Over the past year SMMD returned +30.81% vs +24.43% for VYM, so SMMD leads on 1-year performance. Over the longest common window we track (9 years), SMMD annualized +10.71% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, SMMD or VYM?
SMMD has been the more volatile fund at 20.5% annualized versus 14.6% for VYM. Worst drawdown: SMMD -41.1% vs VYM -58.8%.
Should I hold both SMMD and VYM?
SMMD 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 SMMD and VYM?
SMMD and VYM share 12 common holdings with a 0.5% weight overlap. Combined, they hold 577 unique securities.
Which pays a higher dividend, SMMD or VYM?
SMMD yields 1.05% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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