UMMA vs VYM
Wahed Dow Jones Islamic World ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. UMMA delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | UMMA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.04% | |
| AUM | $280M | $79.0B | |
| Dividend Yield | 0.92% | 2.86% | |
| Holdings | 102 | 568 | |
| YTD Return | +24.75% | +16.53% | |
| 1Y Return | +44.22% | +25.03% | |
| 3Y Return (annualized) | +21.79% | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 20.8% | 14.6% | |
| Max Drawdown | -34.2% | -58.8% | |
| Fund Family | Wahed Invest | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 6, 2022 | Nov 10, 2006 |
UMMA vs VYM Performance
Wahed Dow Jones Islamic World ETF (UMMA) is a ETF from Wahed Invest and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year UMMA returned +44.22% while VYM returned +25.03%. Year to date, UMMA is up 24.75% versus a gain of 16.53% for VYM.
Over three years, UMMA compounded at +21.79% per year against +18.54% for VYM. Across the full 5-year window we track, UMMA has the edge at +10.38% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
UMMA has been the more volatile fund, with annualized monthly volatility of 20.8% 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 -34.2% for UMMA 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
UMMA charges 0.65% per year while VYM charges 0.04%. On a $10,000 position that is $65 vs $4 annually, a gap of $61 per year that compounds over a long holding period. On income, UMMA currently yields 0.92% against 2.86% for VYM.
Holdings Overlap
UMMA and VYM share 0 holdings out of 650 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, UMMA or VYM?
UMMA has an expense ratio of 0.65% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $61 per year of difference.
Which performed better, UMMA or VYM?
Over the past year UMMA returned +44.22% vs +25.03% for VYM, so UMMA leads on 1-year performance. Over the longest common window we track (5 years), UMMA annualized +10.38% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, UMMA or VYM?
UMMA has been the more volatile fund at 20.8% annualized versus 14.6% for VYM. Worst drawdown: UMMA -34.2% vs VYM -58.8%.
Should I hold both UMMA and VYM?
UMMA 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 UMMA and VYM?
UMMA and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 650 unique securities.
Which pays a higher dividend, UMMA or VYM?
UMMA yields 0.92% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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