USDU vs VYM
WisdomTree Bloomberg US Dollar Bullish 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 613 holdings.
Side-by-Side Comparison
| Metric | USDU | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.51% | 0.04% | |
| AUM | $280M | $81.6B | |
| Dividend Yield | 3.73% | 2.24% | |
| Holdings | 123 | 613 | |
| YTD Return | +1.94% | +14.57% | |
| 1Y Return | +3.65% | +21.08% | |
| 3Y Return (annualized) | +3.98% | +18.16% | |
| 5Y Return (annualized) | +5.06% | +12.00% | |
| Volatility (annualized) | 6.2% | 14.6% | |
| Max Drawdown | -14.5% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 18, 2013 | Nov 10, 2006 |
USDU vs VYM Performance
WisdomTree Bloomberg US Dollar Bullish Fund (USDU) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year USDU returned +3.65% while VYM returned +21.08%. Year to date, USDU is up 1.94% versus a gain of 14.57% for VYM.
Over three years, USDU compounded at +3.98% per year against +18.16% for VYM; over five years the annualized figures are +5.06% and +12.00% respectively. Across the full 13-year window we track, VYM has the edge at +6.99% annualized vs +3.14%. 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 6.2% for USDU. 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 -14.5% for USDU 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 -0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
USDU charges 0.51% per year while VYM charges 0.04%. On a $10,000 position that is $51 vs $4 annually, a gap of $47 per year that compounds over a long holding period. On income, USDU currently yields 3.73% against 2.24% for VYM.
Holdings Overlap
USDU and VYM share 0 holdings out of 604 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, USDU or VYM?
USDU has an expense ratio of 0.51% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, USDU or VYM?
Over the past year USDU returned +3.65% vs +21.08% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), USDU annualized +3.14% vs +6.99% for VYM. Past performance does not guarantee future results.
Which is riskier, USDU or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.2% for USDU. Worst drawdown: USDU -14.5% vs VYM -58.8%.
Should I hold both USDU and VYM?
USDU and VYM have a monthly-return correlation of -0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between USDU and VYM?
USDU and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 604 unique securities.
Which pays a higher dividend, USDU or VYM?
USDU yields 3.73% while VYM yields 2.24%, so USDU currently pays the higher dividend yield.
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