UTES vs VYM
Virtus Reaves Utilities ETF 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 | UTES | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.04% | |
| AUM | $1.4B | $79.0B | |
| Dividend Yield | 1.46% | 2.86% | |
| Holdings | 19 | 568 | |
| YTD Return | -5.33% | +16.10% | |
| 1Y Return | -4.83% | +25.99% | |
| 3Y Return (annualized) | +21.09% | +18.29% | |
| 5Y Return (annualized) | +13.80% | +12.35% | |
| Volatility (annualized) | 16.1% | 14.6% | |
| Max Drawdown | -35.7% | -58.8% | |
| Fund Family | Virtus Investment Partners | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 23, 2015 | Nov 10, 2006 |
UTES vs VYM Performance
Virtus Reaves Utilities ETF (UTES) is a ETF from Virtus Investment Partners and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year UTES returned -4.83% while VYM returned +25.99%. Year to date, UTES is down 5.33% versus a gain of 16.10% for VYM.
Over three years, UTES compounded at +21.09% per year against +18.29% for VYM; over five years the annualized figures are +13.80% and +12.35% respectively. Across the full 11-year window we track, UTES has the edge at +11.75% annualized vs +7.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
UTES has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 14.6% 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 -35.7% for UTES 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
UTES charges 0.49% per year while VYM charges 0.04%. On a $10,000 position that is $49 vs $4 annually, a gap of $45 per year that compounds over a long holding period. On income, UTES currently yields 1.46% against 2.86% for VYM.
Holdings Overlap
UTES and VYM share 15 holdings out of 561 unique holdings combined, representing a 2.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, UTES or VYM?
UTES has an expense ratio of 0.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, UTES or VYM?
Over the past year UTES returned -4.83% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (11 years), UTES annualized +11.75% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, UTES or VYM?
UTES has been the more volatile fund at 16.1% annualized versus 14.6% for VYM. Worst drawdown: UTES -35.7% vs VYM -58.8%.
Should I hold both UTES and VYM?
UTES and VYM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between UTES and VYM?
UTES and VYM share 15 common holdings with a 2.9% weight overlap. Combined, they hold 561 unique securities.
Which pays a higher dividend, UTES or VYM?
UTES yields 1.46% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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