VALQ vs VYM
American Century US Quality Value ETF vs Vanguard High Dividend Yield ETF
Which is better, VALQ or VYM?
Nearly the same fund. VYM costs less.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.96. VALQ is less concentrated, with 23.9% of the fund in its ten largest positions against 26.1%.
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 | VALQ | VYM |
|---|---|---|
| Expense Ratio | 0.29% | 0.04%Best |
| AUM | $338M | $81.6B |
| Dividend Yield | 1.74% | 2.22% |
| Holdings | 224 | 613 |
| YTD Return | +7.70% | +10.23%Best |
| 1Y Return | +11.79% | +14.28%Best |
| 3Y Return (annualized) | +15.08% | +17.50%Best |
| 5Y Return (annualized) | +9.22% | +11.60%Best |
| Volatility (annualized) | 16.2% | 15.2%Best |
| Max Drawdown | -38.2% | -35.7%Best |
| $10,000 over 5 years | $15,542 | $17,311Best |
| Top 10 Weight | 23.9%Best | 26.1% |
| Fund Family | American Century Investments | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Jan 11, 2018 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Jan 16, 2018 to Sep 23, 2026 (8.7 years).
VALQ 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 8.7 years both funds cover.
VALQ vs VYM Performance
American Century US Quality Value ETF (VALQ) is an ETF from American Century Investments and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VALQ returned +11.79% while VYM returned +14.28%. Year to date, VALQ is up 7.70% versus a gain of 10.23% for VYM.
Over three years, VALQ compounded at +15.08% per year against +17.50% for VYM; over five years the annualized figures are +9.22% and +11.60% respectively. Across the full 9-year window we track, VYM has the edge at +8.93% annualized vs +7.96%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VALQ has been the more volatile fund, with annualized monthly volatility of 16.2% compared with 15.2% 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 -38.2% for VALQ 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VALQ charges 0.29% per year while VYM charges 0.04%. On a $10,000 position that is $29 vs $4 annually, a gap of $25 per year that compounds over a long holding period. On income, VALQ currently yields 1.74% against 2.22% for VYM.
Holdings Overlap
74.1% of VALQ's money is in holdings VYM also owns. 47.2% of VYM's money is in holdings VALQ also owns.
Most of VALQ is already inside VYM. Owning both mostly buys the same companies twice.
129 positions in common, counted across the 241 positions we hold weights for in VALQ and 557 in VYM, against full books of 224 and 613.
What only one of them owns
Our book lists 400 positions for VYM that do not appear in our book for VALQ (49.9% of the fund), and 100 for VALQ that do not appear in VYM (23.7%).
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 VALQ | Weight in VYM | Difference |
|---|---|---|---|
| JNJJohnson & Johnson - Common | 1.85% | 2.51% | 0.66% |
| XOMExxon Mobil Corp. | 1.65% | 2.63% | 0.98% |
| UNHUnitedhealth Group Incorporated | 2.73% | 1.52% | 1.21% |
| MRKMerck & Company Inc | 2.77% | 1.31% | 1.46% |
| CSCOCisco Systems Inc. - Ordinary Shares | 2.21% | 1.86% | 0.35% |
| HDHome Depot Inc/The | 2.64% | 1.34% | 1.30% |
| PGProcter & Gamble Company | 2.50% | 1.37% | 1.13% |
| ABBVAbbvie Inc. | 1.62% | 1.80% | 0.18% |
| BMYBristol-Myers Squibb Co. | 2.77% | 0.54% | 2.23% |
| LMTLockheed Martin Corp | 2.57% | 0.48% | 2.09% |
74.1% of VALQ is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VALQ or VYM?
VALQ has an expense ratio of 0.29% while VYM charges 0.04%. VYM is the cheaper option, by $25 a year on a $10,000 investment.
Which performed better, VALQ or VYM?
Over the past year VALQ returned +11.79% vs +14.28% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), VALQ annualized +7.96% vs +8.93% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VALQ or VYM?
VALQ has been the more volatile fund at 16.2% annualized versus 15.2% for VYM. Worst drawdown: VALQ -38.2% vs VYM -35.7%.
Should I hold both VALQ and VYM?
VALQ and VYM have a monthly-return correlation of 0.96, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between VALQ and VYM?
74.1% of VALQ's money is in holdings VYM also owns. 47.2% of VYM's is in holdings VALQ also owns. They hold 129 positions in common, counted across the 241 positions we hold weights for in VALQ and 557 in VYM.
Which pays a higher dividend, VALQ or VYM?
VALQ yields 1.74% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than VALQ?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.96. VALQ is less concentrated, with 23.9% of the fund in its ten largest positions against 26.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.