SWZ vs VYM
Total Return Securities Fund 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 616 holdings.
Side-by-Side Comparison
| Metric | SWZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.62% | 0.04% | |
| AUM | $96M | $81.6B | |
| Dividend Yield | 0.00% | 2.24% | |
| Holdings | 27 | 616 | |
| YTD Return | -4.49% | +16.42% | |
| 1Y Return | -2.30% | +24.22% | |
| 3Y Return (annualized) | +6.30% | +19.03% | |
| 5Y Return (annualized) | +2.51% | +12.21% | |
| Volatility (annualized) | 27.8% | 14.6% | |
| Max Drawdown | -57.7% | -58.8% | |
| Fund Family | Total Return Securities Fund | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 27, 1987 | Nov 10, 2006 |
SWZ vs VYM Performance
Total Return Securities Fund (SWZ) is a ETF from Total Return Securities Fund and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year SWZ returned -2.30% while VYM returned +24.22%. Year to date, SWZ is down 4.49% versus a gain of 16.42% for VYM.
Over three years, SWZ compounded at +6.30% per year against +19.03% for VYM; over five years the annualized figures are +2.51% and +12.21% respectively. Across the full 20-year window we track, SWZ has the edge at +11.59% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SWZ has been the more volatile fund, with annualized monthly volatility of 27.8% 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 -57.7% for SWZ 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SWZ charges 1.62% per year while VYM charges 0.04%. On a $10,000 position that is $162 vs $4 annually, a gap of $158 per year that compounds over a long holding period. On income, SWZ currently yields 0.00% against 2.24% for VYM.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, SWZ or VYM?
SWZ has an expense ratio of 1.62% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $158 per year of difference.
Which performed better, SWZ or VYM?
Over the past year SWZ returned -2.30% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), SWZ annualized +11.59% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, SWZ or VYM?
SWZ has been the more volatile fund at 27.8% annualized versus 14.6% for VYM. Worst drawdown: SWZ -57.7% vs VYM -58.8%.
Should I hold both SWZ and VYM?
SWZ and VYM have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SWZ and VYM?
SWZ and VYM share 2 common holdings with a 1.0% weight overlap. Combined, they hold 625 unique securities.
Which pays a higher dividend, SWZ or VYM?
SWZ yields 0.00% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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