UDIV vs VYM
Franklin US Core Dividend Tilt Index ETF vs Vanguard High Dividend Yield ETF
Which is better, UDIV or VYM?
UDIV has been ahead.
VYM has a lower expense ratio. UDIV led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 37.5%.
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 | UDIV | VYM |
|---|---|---|
| Expense Ratio | 0.06% | 0.04%Best |
| AUM | $148M | $81.6B |
| Dividend Yield | 1.49% | 2.24% |
| Holdings | 286 | 613 |
| YTD Return | +17.71%Best | +15.29% |
| 1Y Return | +25.53%Best | +22.23% |
| 3Y Return (annualized) | +23.62%Best | +18.81% |
| 5Y Return (annualized) | +13.99%Best | +12.14% |
| Volatility (annualized) | 14.3% | 14.1%Best |
| Max Drawdown | -35.5%Best | -35.7% |
| $10,000 over 5 years | $19,246Best | $17,734 |
| Top 10 Weight | 37.5% | 25.9%Best |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Jun 1, 2016 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jun 3, 2016 to Sep 3, 2026 (10.3 years).
UDIV 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 10.3 years both funds cover.
UDIV vs VYM Performance
Franklin US Core Dividend Tilt Index ETF (UDIV) is an ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year UDIV returned +25.53% while VYM returned +22.23%. Year to date, UDIV is up 17.71% versus a gain of 15.29% for VYM.
Over three years, UDIV compounded at +23.62% per year against +18.81% for VYM; over five years the annualized figures are +13.99% and +12.14% respectively. Across the full 10-year window we track, UDIV has the edge at +10.31% annualized vs +10.30%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
UDIV has been the more volatile fund, with annualized monthly volatility of 14.3% compared with 14.1% 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 -35.5% for UDIV and -35.7% 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
UDIV charges 0.06% per year while VYM charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, UDIV currently yields 1.49% against 2.24% for VYM.
Holdings Overlap
45.9% of UDIV's money is in holdings VYM also owns. 76.7% of VYM's money is in holdings UDIV also owns.
Most of VYM is already inside UDIV. Owning both mostly buys the same companies twice.
161 positions in common, counted across the 277 positions we hold weights for in UDIV and 603 in VYM, against full books of 286 and 613.
What only one of them owns
Our book lists 411 positions for VYM that do not appear in our book for UDIV (21.2% of the fund), and 113 for UDIV that do not appear in VYM (53.6%).
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 UDIV | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 3.27% | 7.29% | 4.02% |
| JPMJpmorgan Chase | 1.50% | 3.38% | 1.88% |
| JNJJohnson & Johnson - Common | 0.78% | 2.54% | 1.76% |
| XOMExxon Mobil Corp. | 0.90% | 2.36% | 1.46% |
| ABBVAbbvie Inc. | 0.87% | 1.85% | 0.98% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.75% | 1.93% | 1.18% |
| CATCaterpillar, Inc. | 0.42% | 2.01% | 1.59% |
| HDHome Depot Inc/The | 0.92% | 1.46% | 0.54% |
| BACBank of America Corp.: Financials | 0.71% | 1.56% | 0.85% |
| CVXChevron Corp | 0.89% | 1.28% | 0.39% |
76.7% of VYM is already inside UDIV.
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, UDIV or VYM?
UDIV has an expense ratio of 0.06% while VYM charges 0.04%. VYM is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, UDIV or VYM?
Over the past year UDIV returned +25.53% vs +22.23% for VYM, so UDIV leads on 1-year performance. Over the longest common window we track (10 years), UDIV annualized +10.31% vs +10.30% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, UDIV or VYM?
UDIV has been the more volatile fund at 14.3% annualized versus 14.1% for VYM. Worst drawdown: UDIV -35.5% vs VYM -35.7%.
Should I hold both UDIV and VYM?
UDIV and VYM have a monthly-return correlation of 0.89, 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 UDIV and VYM?
76.7% of VYM's money is in holdings UDIV also owns. 76.7% of VYM's is in holdings UDIV also owns. They hold 161 positions in common, counted across the 277 positions we hold weights for in UDIV and 603 in VYM.
Which pays a higher dividend, UDIV or VYM?
UDIV yields 1.49% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than UDIV?
VYM has a lower expense ratio. UDIV led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 37.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.