USA vs VYM
Liberty All-Star Equity Fund 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 | USA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.92% | 0.04% | |
| AUM | $2.0B | $79.0B | |
| Dividend Yield | 10.35% | 2.86% | |
| Holdings | 139 | 568 | |
| YTD Return | +4.89% | +16.16% | |
| 1Y Return | +4.83% | +26.05% | |
| 3Y Return (annualized) | +8.81% | +18.43% | |
| 5Y Return (annualized) | +3.42% | +12.21% | |
| Volatility (annualized) | 19.7% | 14.6% | |
| Max Drawdown | -84.2% | -58.8% | |
| Fund Family | Liberty All Star Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 31, 1986 | Nov 10, 2006 |
USA vs VYM Performance
Liberty All-Star Equity Fund (USA) is a ETF from Liberty All Star Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year USA returned +4.83% while VYM returned +26.05%. Year to date, USA is up 4.89% versus a gain of 16.16% for VYM.
Over three years, USA compounded at +8.81% per year against +18.43% for VYM; over five years the annualized figures are +3.42% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.09% annualized vs -0.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USA has been the more volatile fund, with annualized monthly volatility of 19.7% 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 -84.2% for USA 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
USA charges 0.92% per year while VYM charges 0.04%. On a $10,000 position that is $92 vs $4 annually, a gap of $88 per year that compounds over a long holding period. On income, USA currently yields 10.35% against 2.86% for VYM.
Holdings Overlap
USA and VYM share 60 holdings out of 636 unique holdings combined, representing a 18.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, USA or VYM?
USA has an expense ratio of 0.92% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $88 per year of difference.
Which performed better, USA or VYM?
Over the past year USA returned +4.83% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), USA annualized -0.15% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, USA or VYM?
USA has been the more volatile fund at 19.7% annualized versus 14.6% for VYM. Worst drawdown: USA -84.2% vs VYM -58.8%.
Should I hold both USA and VYM?
USA and VYM have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between USA and VYM?
USA and VYM share 60 common holdings with a 18.3% weight overlap. Combined, they hold 636 unique securities.
Which pays a higher dividend, USA or VYM?
USA yields 10.35% while VYM yields 2.86%, so USA currently pays the higher dividend yield.
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