VAW vs VYM
Vanguard Materials ETF vs Vanguard High Dividend Yield ETF
Which is better, VAW or VYM?
Mid Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 56.2%.
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 | VAW | VYM |
|---|---|---|
| Expense Ratio | 0.09% | 0.04%Best |
| AUM | $2.9B | $81.6B |
| Dividend Yield | 1.39% | 2.22% |
| Holdings | 111 | 613 |
| YTD Return | +8.73% | +13.15%Best |
| 1Y Return | +12.37% | +17.82%Best |
| 3Y Return (annualized) | +10.06% | +17.99%Best |
| 5Y Return (annualized) | +6.27% | +12.16%Best |
| Volatility (annualized) | 21.1% | 14.5%Best |
| Max Drawdown | -63.5% | -58.8%Best |
| $10,000 over 5 years | $13,554 | $17,750Best |
| Top 10 Weight | 56.2% | 25.9%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Value |
| Inception | Jan 26, 2004 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 10, 2026 (19.8 years).
VAW 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 19.8 years both funds cover.
VAW vs VYM Performance
Vanguard Materials ETF (VAW) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VAW returned +12.37% while VYM returned +17.82%. Year to date, VAW is up 8.73% versus a gain of 13.15% for VYM.
Over three years, VAW compounded at +10.06% per year against +17.99% for VYM; over five years the annualized figures are +6.27% and +12.16% respectively. Across the full 20-year window we track, VYM has the edge at +6.91% annualized vs +6.70%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VAW has been the more volatile fund, with annualized monthly volatility of 21.1% compared with 14.5% 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 -63.5% for VAW and -58.8% 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VAW charges 0.09% per year while VYM charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, VAW currently yields 1.39% against 2.22% for VYM.
Holdings Overlap
52.1% of VAW's money is in holdings VYM also owns. 3.3% of VYM's money is in holdings VAW also owns.
The two portfolios partly overlap.
42 positions in common, counted across the 111 positions we hold weights for in VAW and 603 in VYM, against full books of 111 and 613.
What only one of them owns
Our book lists 527 positions for VYM that do not appear in our book for VAW (94.3% of the fund), and 60 for VAW that do not appear in VYM (40.6%).
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 VAW | Weight in VYM | Difference |
|---|---|---|---|
| LINLinde Plc Ordinary Shares | 15.72% | 0.99% | 14.73% |
| NEMNewmont Corp. | 6.59% | 0.41% | 6.18% |
| APDAir Products & Chemicals In | 3.88% | 0.27% | 3.61% |
| NUENucor Corp. | 3.23% | 0.20% | 3.03% |
| PPGPpg Industries Inc. | 1.77% | 0.11% | 1.66% |
| SWR:IESmurfit Westrock Plc | 1.59% | 0.10% | 1.49% |
| PKGPackaging Corp. Of America | 1.39% | 0.09% | 1.30% |
| AMCRAmcor Plc Ordinary Shares | 1.31% | 0.08% | 1.23% |
| IFFInternational Flavors & Fragrances Inc. | 1.29% | 0.08% | 1.21% |
| DOWDow Inc. | 1.29% | 0.08% | 1.21% |
52.1% of VAW 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, VAW or VYM?
VAW has an expense ratio of 0.09% while VYM charges 0.04%. VYM is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VAW or VYM?
Over the past year VAW returned +12.37% vs +17.82% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VAW annualized +6.70% vs +6.91% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VAW or VYM?
VAW has been the more volatile fund at 21.1% annualized versus 14.5% for VYM. Worst drawdown: VAW -63.5% vs VYM -58.8%.
Should I hold both VAW and VYM?
VAW and VYM have a monthly-return correlation of 0.85, 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 VAW and VYM?
52.1% of VAW's money is in holdings VYM also owns. 3.3% of VYM's is in holdings VAW also owns. They hold 42 positions in common, counted across the 111 positions we hold weights for in VAW and 603 in VYM.
Which pays a higher dividend, VAW or VYM?
VAW yields 1.39% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than VAW?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 56.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.