SWPPX vs VYM
Schwab S&P 500 Index Fund vs Vanguard High Dividend Yield ETF
Which is better, SWPPX or VYM?
Large Cap Blend against Large Cap Value.
SWPPX has a lower expense ratio. SWPPX led over 1Y, VYM over 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 37.4%.
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 | SWPPX | VYM |
|---|---|---|
| Expense Ratio | 0.02%Best | 0.04% |
| AUM | $147.7B | $81.6B |
| Dividend Yield | 0.98% | 2.22% |
| Holdings | 503 | 613 |
| YTD Price Return | +12.29%Best | +10.02% |
| 1Y Price Return | +15.79%Best | +12.54% |
| 3Y Price Return (annualized) | -34.11% | +14.28%Best |
| 5Y Price Return (annualized) | -21.80% | +9.23%Best |
| Volatility (annualized) | 40.5% | 14.0%Best |
| Max Drawdown | -83.7% | -17.5%Best |
| $10,000 over 5 years | $2,924 | $15,549Best |
| Top 10 Weight | 37.4% | 26.1%Best |
| Fund Family | Charles Schwab Asset Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | May 19, 1997 | Nov 10, 2006 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for SWPPX. Both funds are measured the same way, so the comparison holds. SWPPX yields 0.98% and VYM 2.22% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 20, 2021 to Sep 17, 2026 (5 years).
SWPPX 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
SWPPX vs VYM Performance
Schwab S&P 500 Index Fund (SWPPX) is a mutual fund from Charles Schwab Asset Management and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year SWPPX returned +15.79% while VYM returned +12.54%. Year to date, SWPPX is up 12.29% versus a gain of 10.02% for VYM.
Over three years, SWPPX compounded at -34.11% per year against +14.28% for VYM; over five years the annualized figures are -21.80% and +9.23% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SWPPX has been the more volatile fund, with annualized monthly volatility of 40.5% compared with 14.0% 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 -83.7% for SWPPX and -17.5% 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 0.20. They move largely independently of each other.
Fees and Cost Over Time
SWPPX charges 0.02% per year while VYM charges 0.04%. On a $10,000 position that is $2 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, SWPPX currently yields 0.98% against 2.22% for VYM.
Structure and taxes
SWPPX is a mutual fund and VYM is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
34.8% of SWPPX's money is in holdings VYM also owns. 91.3% of VYM's money is in holdings SWPPX also owns.
Most of VYM is already inside SWPPX. Owning both mostly buys the same companies twice.
250 positions in common, counted across the 501 positions we hold weights for in SWPPX and 557 in VYM, against full books of 503 and 613.
What only one of them owns
Our book lists 280 positions for VYM that do not appear in our book for SWPPX (7.0% of the fund), and 246 for SWPPX that do not appear in VYM (64.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in SWPPX | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 2.84% | 7.35% | 4.51% |
| JPMJpmorgan Chase | 1.45% | 3.82% | 2.37% |
| XOMExxon Mobil Corp. | 0.99% | 2.63% | 1.64% |
| JNJJohnson & Johnson - Common | 0.95% | 2.51% | 1.56% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.71% | 1.86% | 1.15% |
| ABBVAbbvie Inc. | 0.68% | 1.80% | 1.12% |
| BACBank of America Corp.: Financials | 0.62% | 1.66% | 1.04% |
| UNHUnitedhealth Group Incorporated | 0.58% | 1.52% | 0.94% |
| CATCaterpillar, Inc. | 0.58% | 1.50% | 0.92% |
| CVXChevron Corp | 0.57% | 1.48% | 0.91% |
91.3% of VYM is already inside SWPPX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SWPPX or VYM?
SWPPX has an expense ratio of 0.02% while VYM charges 0.04%. SWPPX is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, SWPPX or VYM?
Over the past year SWPPX returned +15.79% vs +12.54% for VYM, so SWPPX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SWPPX or VYM?
SWPPX has been the more volatile fund at 40.5% annualized versus 14.0% for VYM. Worst drawdown: SWPPX -83.7% vs VYM -17.5%.
Should I hold both SWPPX and VYM?
SWPPX and VYM have a monthly-return correlation of 0.20, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between SWPPX and VYM?
91.3% of VYM's money is in holdings SWPPX also owns. 91.3% of VYM's is in holdings SWPPX also owns. They hold 250 positions in common, counted across the 501 positions we hold weights for in SWPPX and 557 in VYM.
Which pays a higher dividend, SWPPX or VYM?
SWPPX yields 0.98% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is it better to hold SWPPX or VYM in a taxable account?
VYM is an ETF and SWPPX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VYM better than SWPPX?
SWPPX has a lower expense ratio. SWPPX led over 1Y, VYM over 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 37.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.