USEP vs VYM
Innovator U.S. Equity Ultra Buffer ETF - September 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 | USEP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.04% | |
| AUM | $148M | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 6 | 568 | |
| YTD Return | +6.49% | +15.80% | |
| 1Y Return | +11.63% | +26.12% | |
| 3Y Return (annualized) | +12.22% | +18.25% | |
| 5Y Return (annualized) | +8.27% | +12.51% | |
| Volatility (annualized) | 7.1% | 14.6% | |
| Max Drawdown | -13.4% | -58.8% | |
| Fund Family | Innovator ETFs Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 30, 2019 | Nov 10, 2006 |
USEP vs VYM Performance
Innovator U.S. Equity Ultra Buffer ETF - September (USEP) is a ETF from Innovator ETFs Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year USEP returned +11.63% while VYM returned +26.12%. Year to date, USEP is up 6.49% versus a gain of 15.80% for VYM.
Over three years, USEP compounded at +12.22% per year against +18.25% for VYM; over five years the annualized figures are +8.27% and +12.51% respectively. Across the full 7-year window we track, USEP has the edge at +8.08% annualized vs +7.07%. 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 7.1% for USEP. 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 -13.4% for USEP 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
USEP charges 0.79% per year while VYM charges 0.04%. On a $10,000 position that is $79 vs $4 annually, a gap of $75 per year that compounds over a long holding period. On income, USEP currently yields 0.00% against 2.86% for VYM.
Frequently Asked Questions
Which is cheaper, USEP or VYM?
USEP has an expense ratio of 0.79% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $75 per year of difference.
Which performed better, USEP or VYM?
Over the past year USEP returned +11.63% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), USEP annualized +8.08% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, USEP or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.1% for USEP. Worst drawdown: USEP -13.4% vs VYM -58.8%.
Should I hold both USEP and VYM?
USEP and VYM have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, USEP or VYM?
USEP yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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