TOPT vs VYM

TOPT vs VYM

Which is better, TOPT or VYM?

Large Cap Blend against Large Cap Value.

VYM has a lower expense ratio. TOPT led over the full window, VYM over 1Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 70.8%.

Lower Fees: VYMHigher Returns: splitLess Concentrated: VYM

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

MetricTOPTVYM
Expense Ratio0.20%0.04%Best
AUM$662M$81.6B
Dividend Yield0.38%2.22%
Holdings25613
YTD Return+8.90%+12.87%Best
1Y Return+12.67%+17.25%Best
3Y Return (annualized)-+17.66%
5Y Return (annualized)-+11.98%
Volatility (annualized)15.4%10.7%Best
Max Drawdown-21.2%-14.5%Best
$10,000 over 1.9 years$13,722Best$13,063
Top 10 Weight70.8%26.1%Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Value
InceptionOct 23, 2024Nov 10, 2006

Volatility and max drawdown, and the $10,000 over 1.9 years row, are measured over the window both funds cover: Oct 24, 2024 to Sep 15, 2026 (1.9 years).

TOPT 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 1.9 years both funds cover.

TOPT vs VYM Performance

iShares Top 20 US Stocks ETF (TOPT) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year TOPT returned +12.67% while VYM returned +17.25%. Year to date, TOPT is up 8.90% versus a gain of 12.87% for VYM.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TOPT has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 10.7% 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 -21.2% for TOPT and -14.5% 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 0.52. They move together some of the time, and apart the rest.

Fees and Cost Over Time

TOPT charges 0.20% per year while VYM charges 0.04%. On a $10,000 position that is $20 vs $4 annually, a gap of $16 per year that compounds over a long holding period. On income, TOPT currently yields 0.38% against 2.22% for VYM.

Holdings Overlap

TOPT already in VYM15.1%
VYM already in TOPT18.2%

15.1% of TOPT's money is in holdings VYM also owns. 18.2% of VYM's money is in holdings TOPT also owns.

VYM and TOPT share little of their money.

5 positions in common, counted across the 22 positions we hold weights for in TOPT and 557 in VYM, against full books of 25 and 613.

What only one of them owns

Our book lists 523 positions for VYM that do not appear in our book for TOPT (78.9% of the fund), and 16 for TOPT that do not appear in VYM (84.9%).

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

StockWeight in TOPTWeight in VYMDifference
AVGOBroadcom Inc4.25%7.35%3.10%
JPMJpmorgan Chase3.83%3.82%0.01%
XOMExxon Mobil Corp.2.68%2.63%0.05%
JNJJohnson & Johnson - Common2.57%2.51%0.06%
CSCOCisco Systems Inc. - Ordinary Shares1.75%1.86%0.11%

You are not choosing between two funds in isolation.

Whichever of TOPT and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

TOPTVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, TOPT or VYM?

TOPT has an expense ratio of 0.20% while VYM charges 0.04%. VYM is the cheaper option, by $16 a year on a $10,000 investment.

Which performed better, TOPT or VYM?

Over the past year TOPT returned +12.67% vs +17.25% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), TOPT annualized +18.12% vs +15.10% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, TOPT or VYM?

TOPT has been the more volatile fund at 15.4% annualized versus 10.7% for VYM. Worst drawdown: TOPT -21.2% vs VYM -14.5%.

Should I hold both TOPT and VYM?

TOPT and VYM have a monthly-return correlation of 0.52, 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 TOPT and VYM?

18.2% of VYM's money is in holdings TOPT also owns. 18.2% of VYM's is in holdings TOPT also owns. They hold 5 positions in common, counted across the 22 positions we hold weights for in TOPT and 557 in VYM.

Which pays a higher dividend, TOPT or VYM?

TOPT yields 0.38% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.

Is VYM better than TOPT?

VYM has a lower expense ratio. TOPT led over the full window, VYM over 1Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 70.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.