ULST vs VYM
State Street Ultra Short Term Bond ETF 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 | ULST | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.04% | |
| AUM | $527M | $79.0B | |
| Dividend Yield | 4.28% | 2.86% | |
| Holdings | 328 | 568 | |
| YTD Return | +1.46% | +16.10% | |
| 1Y Return | +3.21% | +25.99% | |
| 3Y Return (annualized) | +4.55% | +18.29% | |
| 5Y Return (annualized) | +3.48% | +12.35% | |
| Volatility (annualized) | 1.5% | 14.6% | |
| Max Drawdown | -6.3% | -58.8% | |
| Fund Family | State Street Investment Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 9, 2013 | Nov 10, 2006 |
ULST vs VYM Performance
State Street Ultra Short Term Bond ETF (ULST) is a ETF from State Street Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ULST returned +3.21% while VYM returned +25.99%. Year to date, ULST is up 1.46% versus a gain of 16.10% for VYM.
Over three years, ULST compounded at +4.55% per year against +18.29% for VYM; over five years the annualized figures are +3.48% and +12.35% respectively. Across the full 13-year window we track, VYM has the edge at +7.08% annualized vs +1.45%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 1.5% for ULST. 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 -6.3% for ULST 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ULST 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, ULST currently yields 4.28% against 2.86% for VYM.
Holdings Overlap
ULST and VYM share 0 holdings out of 859 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ULST or VYM?
ULST has an expense ratio of 0.20% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, ULST or VYM?
Over the past year ULST returned +3.21% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), ULST annualized +1.45% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, ULST or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.5% for ULST. Worst drawdown: ULST -6.3% vs VYM -58.8%.
Should I hold both ULST and VYM?
ULST and VYM have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ULST and VYM?
ULST and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 859 unique securities.
Which pays a higher dividend, ULST or VYM?
ULST yields 4.28% while VYM yields 2.86%, so ULST currently pays the higher dividend yield.
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