USDU vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricUSDUVYMWinner
Expense Ratio0.51%0.04%
AUM$464M$79.0B
Dividend Yield3.70%2.86%
Holdings2568
YTD Return+2.28%+16.10%
1Y Return+4.20%+25.99%
3Y Return (annualized)+4.53%+18.29%
5Y Return (annualized)+5.10%+12.35%
Volatility (annualized)6.2%14.6%
Max Drawdown-14.5%-58.8%
Fund FamilyWisdomTree InvestmentsVanguard (US)
CategoryAlternativeEquity
InceptionDec 18, 2013Nov 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 +4.20% while VYM returned +25.99%. Year to date, USDU is up 2.28% versus a gain of 16.10% for VYM.

Over three years, USDU compounded at +4.53% per year against +18.29% for VYM; over five years the annualized figures are +5.10% and +12.35% respectively. Across the full 13-year window we track, VYM has the edge at +7.08% annualized vs +3.19%. 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 3.70% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

USDU and VYM share 0 holdings out of 559 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 +4.20% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), USDU annualized +3.19% vs +7.08% 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 559 unique securities.

Which pays a higher dividend, USDU or VYM?

USDU yields 3.70% while VYM yields 2.86%, so USDU currently pays the higher dividend yield.

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