UTWO vs VYM
F/m US Treasury 2 Year Note 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 | UTWO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $482M | $79.0B | |
| Dividend Yield | 3.82% | 2.86% | |
| Holdings | 2 | 568 | |
| YTD Return | +0.76% | +16.16% | |
| 1Y Return | +2.58% | +26.05% | |
| 3Y Return (annualized) | +4.02% | +18.43% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 1.9% | 14.6% | |
| Max Drawdown | -2.0% | -58.8% | |
| Fund Family | US Benchmark Series | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 8, 2022 | Nov 10, 2006 |
UTWO vs VYM Performance
F/m US Treasury 2 Year Note ETF (UTWO) is a ETF from US Benchmark Series and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year UTWO returned +2.58% while VYM returned +26.05%. Year to date, UTWO is up 0.76% versus a gain of 16.16% for VYM.
Over three years, UTWO compounded at +4.02% per year against +18.43% for VYM. Across the full 4-year window we track, VYM has the edge at +7.09% annualized vs +2.96%. 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 1.9% for UTWO. 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 -2.0% for UTWO 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
UTWO charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, UTWO currently yields 3.82% against 2.86% for VYM.
Holdings Overlap
UTWO 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, UTWO or VYM?
UTWO has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, UTWO or VYM?
Over the past year UTWO returned +2.58% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), UTWO annualized +2.96% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, UTWO or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 1.9% for UTWO. Worst drawdown: UTWO -2.0% vs VYM -58.8%.
Should I hold both UTWO and VYM?
UTWO and VYM have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between UTWO and VYM?
UTWO and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, UTWO or VYM?
UTWO yields 3.82% while VYM yields 2.86%, so UTWO currently pays the higher dividend yield.
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