UDEC vs VYM
Innovator US Equity Ultra Buffer ETF - December 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 | UDEC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.04% | |
| AUM | $247M | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 6 | 568 | |
| YTD Return | +7.07% | +15.80% | |
| 1Y Return | +14.92% | +26.12% | |
| 3Y Return (annualized) | +11.73% | +18.25% | |
| 5Y Return (annualized) | +7.51% | +12.51% | |
| Volatility (annualized) | 54.7% | 14.6% | |
| Max Drawdown | -68.5% | -58.8% | |
| Fund Family | Innovator ETFs Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 1, 2019 | Nov 10, 2006 |
UDEC vs VYM Performance
Innovator US Equity Ultra Buffer ETF - December (UDEC) is a ETF from Innovator ETFs Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year UDEC returned +14.92% while VYM returned +26.12%. Year to date, UDEC is up 7.07% versus a gain of 15.80% for VYM.
Over three years, UDEC compounded at +11.73% per year against +18.25% for VYM; over five years the annualized figures are +7.51% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +1.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
UDEC has been the more volatile fund, with annualized monthly volatility of 54.7% 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 -68.5% for UDEC 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
UDEC charges 0.79% per year while VYM charges 0.04%. On a $10,000 position that is $79 vs $4 annually, a gap of $75 per year that compounds over a long holding period. On income, UDEC currently yields 0.00% against 2.86% for VYM.
Frequently Asked Questions
Which is cheaper, UDEC or VYM?
UDEC has an expense ratio of 0.79% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $75 per year of difference.
Which performed better, UDEC or VYM?
Over the past year UDEC returned +14.92% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), UDEC annualized +1.00% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, UDEC or VYM?
UDEC has been the more volatile fund at 54.7% annualized versus 14.6% for VYM. Worst drawdown: UDEC -68.5% vs VYM -58.8%.
Should I hold both UDEC and VYM?
UDEC and VYM have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, UDEC or VYM?
UDEC yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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