USNZ vs VYM
Xtrackers Net Zero Pathway Paris Aligned US Equity ETF vs Vanguard High Dividend Yield ETF
Which is better, USNZ or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. USNZ led over 3Y and the full window, VYM over 1Y. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 44.1%.
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 | USNZ | VYM |
|---|---|---|
| Expense Ratio | 0.10% | 0.04%Best |
| AUM | $297M | $81.6B |
| Dividend Yield | 0.93% | 2.22% |
| Holdings | 310 | 613 |
| YTD Return | +11.69% | +13.15%Best |
| 1Y Return | +17.47% | +17.82%Best |
| 3Y Return (annualized) | +20.07%Best | +17.99% |
| 5Y Return (annualized) | - | +12.16% |
| Volatility (annualized) | 15.3% | 13.3%Best |
| Max Drawdown | -19.2% | -14.5%Best |
| $10,000 over 4.2 years | $20,610Best | $17,699 |
| Top 10 Weight | 44.1% | 25.9%Best |
| Fund Family | Xtrackers ETFs | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jun 27, 2022 | Nov 10, 2006 |
Volatility and max drawdown, and the $10,000 over 4.2 years row, are measured over the window both funds cover: Jun 28, 2022 to Sep 10, 2026 (4.2 years).
USNZ 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 4.2 years both funds cover.
USNZ vs VYM Performance
Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ) is an ETF from Xtrackers ETFs and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year USNZ returned +17.47% while VYM returned +17.82%. Year to date, USNZ is up 11.69% versus a gain of 13.15% for VYM.
Over three years, USNZ compounded at +20.07% per year against +17.99% for VYM. Across the full 4-year window we track, USNZ has the edge at +18.79% annualized vs +14.56%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USNZ has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 13.3% 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 -19.2% for USNZ and -14.5% 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
USNZ charges 0.10% per year while VYM charges 0.04%. On a $10,000 position that is $10 vs $4 annually, a gap of $6 per year that compounds over a long holding period. On income, USNZ currently yields 0.93% against 2.22% for VYM.
Holdings Overlap
27.3% of USNZ's money is in holdings VYM also owns. 58.4% of VYM's money is in holdings USNZ also owns.
The two portfolios partly overlap.
123 positions in common, counted across the 298 positions we hold weights for in USNZ and 603 in VYM, against full books of 310 and 613.
What only one of them owns
Our book lists 445 positions for VYM that do not appear in our book for USNZ (39.1% of the fund), and 168 for USNZ that do not appear in VYM (71.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in USNZ | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 3.18% | 7.29% | 4.11% |
| JPMJpmorgan Chase & Co. | 1.49% | 3.38% | 1.89% |
| JNJJohnson & Johnson | 1.05% | 2.54% | 1.49% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.76% | 1.93% | 1.17% |
| ABBVAbbvie Inc. | 0.76% | 1.85% | 1.09% |
| BACBank Of America Corp. | 0.63% | 1.56% | 0.93% |
| UNHUnitedhealth Group Inc. | 0.57% | 1.56% | 0.99% |
| HDHome Depot Inc/The | 0.56% | 1.46% | 0.90% |
| PGProcter & Gamble Company | 0.56% | 1.42% | 0.86% |
| MRKMerck & Co. Inc. | 0.61% | 1.32% | 0.71% |
58.4% of VYM is already inside USNZ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, USNZ or VYM?
USNZ has an expense ratio of 0.10% while VYM charges 0.04%. VYM is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, USNZ or VYM?
Over the past year USNZ returned +17.47% vs +17.82% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), USNZ annualized +18.79% vs +14.56% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, USNZ or VYM?
USNZ has been the more volatile fund at 15.3% annualized versus 13.3% for VYM. Worst drawdown: USNZ -19.2% vs VYM -14.5%.
Should I hold both USNZ and VYM?
USNZ and VYM have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between USNZ and VYM?
58.4% of VYM's money is in holdings USNZ also owns. 58.4% of VYM's is in holdings USNZ also owns. They hold 123 positions in common, counted across the 298 positions we hold weights for in USNZ and 603 in VYM.
Which pays a higher dividend, USNZ or VYM?
USNZ yields 0.93% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than USNZ?
VYM has a lower expense ratio. USNZ led over 3Y and the full window, VYM over 1Y. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 44.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.