USHY vs VYM
iShares Broad USD High Yield Corporate Bond ETF vs Vanguard High Dividend Yield ETF
Which is better, USHY or VYM?
High Yield Bond against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | USHY | VYM |
|---|---|---|
| Expense Ratio | 0.08% | 0.04%Best |
| AUM | $28.5B | $81.6B |
| Dividend Yield | 6.91% | 2.22% |
| Holdings | 1,901 | 613 |
| YTD Return | -2.83% | +13.91%Best |
| 1Y Return | -1.88% | +17.57%Best |
| 3Y Return (annualized) | +6.51% | +18.12%Best |
| 5Y Return (annualized) | +2.77% | +12.17%Best |
| Volatility (annualized) | 9.6%Best | 15.0% |
| Max Drawdown | -31.0%Best | -35.7% |
| $10,000 over 5 years | $11,464 | $17,758Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Value |
| Inception | Oct 25, 2017 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 26, 2017 to Sep 11, 2026 (8.9 years).
USHY vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8.9 years both funds cover.
USHY vs VYM Performance
iShares Broad USD High Yield Corporate Bond ETF (USHY) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year USHY returned -1.88% while VYM returned +17.57%. Year to date, USHY is down 2.83% versus a gain of 13.91% for VYM.
Over three years, USHY compounded at +6.51% per year against +18.12% for VYM; over five years the annualized figures are +2.77% and +12.17% respectively. Across the full 9-year window we track, VYM has the edge at +9.89% annualized vs +1.93%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 9.6% for USHY. 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 -31.0% for USHY and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
USHY charges 0.08% per year while VYM charges 0.04%. On a $10,000 position that is $8 vs $4 annually, a gap of $4 per year that compounds over a long holding period. On income, USHY currently yields 6.91% against 2.22% for VYM.
Holdings Overlap
At least 0.1% of VYM's money is in holdings USHY also owns.
Stated as a floor: for USHY, our book for it covers 76.9% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
2 positions in common, counted across the 1,472 positions we hold weights for in USHY and 603 in VYM, against full books of 1,901 and 613.
Top Shared Holdings
| Stock | Weight in USHY | Weight in VYM | Difference |
|---|---|---|---|
| MTCHII 5 12/15/27 14Match Group Inc | 0.03% | 0.04% | 0.01% |
| PFSI 4.25 02/15/29 1Pennymac Financial Services Inc | 0.04% | 0.01% | 0.03% |
You are not choosing between two funds in isolation.
Whichever of USHY and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, USHY or VYM?
USHY has an expense ratio of 0.08% while VYM charges 0.04%. VYM is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, USHY or VYM?
Over the past year USHY returned -1.88% vs +17.57% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), USHY annualized +1.93% vs +9.89% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, USHY or VYM?
VYM has been the more volatile fund at 15.0% annualized versus 9.6% for USHY. Worst drawdown: USHY -31.0% vs VYM -35.7%.
Should I hold both USHY and VYM?
USHY and VYM have a monthly-return correlation of 0.60, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, USHY or VYM?
USHY yields 6.91% while VYM yields 2.22%, so USHY currently pays the higher dividend yield.
Is VYM better than USHY?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.