VALQ vs VYM
American Century US Quality Value 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 | VALQ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.04% | |
| AUM | $330M | $79.0B | |
| Dividend Yield | 1.80% | 2.86% | |
| Holdings | 227 | 568 | |
| YTD Return | +9.57% | +16.53% | |
| 1Y Return | +16.69% | +25.03% | |
| 3Y Return (annualized) | +14.59% | +18.54% | |
| 5Y Return (annualized) | +8.99% | +12.25% | |
| Volatility (annualized) | 16.2% | 14.6% | |
| Max Drawdown | -38.2% | -58.8% | |
| Fund Family | American Century Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 11, 2018 | Nov 10, 2006 |
VALQ vs VYM Performance
American Century US Quality Value ETF (VALQ) is a ETF from American Century Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VALQ returned +16.69% while VYM returned +25.03%. Year to date, VALQ is up 9.57% versus a gain of 16.53% for VYM.
Over three years, VALQ compounded at +14.59% per year against +18.54% for VYM; over five years the annualized figures are +8.99% and +12.25% respectively. Across the full 9-year window we track, VALQ has the edge at +8.29% annualized vs +7.10%. 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 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 -38.2% for VALQ 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 0.96. 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 1.80% against 2.86% for VYM.
Holdings Overlap
VALQ and VYM share 107 holdings out of 674 unique holdings combined, representing a 29.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $25 per year of difference.
Which performed better, VALQ or VYM?
Over the past year VALQ returned +16.69% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), VALQ annualized +8.29% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, VALQ or VYM?
VALQ has been the more volatile fund at 16.2% annualized versus 14.6% for VYM. Worst drawdown: VALQ -38.2% vs VYM -58.8%.
Should I hold both VALQ and VYM?
VALQ and VYM have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VALQ and VYM?
VALQ and VYM share 107 common holdings with a 29.7% weight overlap. Combined, they hold 674 unique securities.
Which pays a higher dividend, VALQ or VYM?
VALQ yields 1.80% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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