VBK vs VYM
Vanguard Morningstar Small-Cap Growth ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VBK delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | VBK | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.04% | |
| AUM | $23.2B | $81.6B | |
| Dividend Yield | 0.45% | 2.24% | |
| Holdings | 553 | 616 | |
| YTD Return | +16.27% | +15.25% | |
| 1Y Return | +23.72% | +22.18% | |
| 3Y Return (annualized) | +17.57% | +18.83% | |
| 5Y Return (annualized) | +5.02% | +12.09% | |
| Volatility (annualized) | 19.6% | 14.6% | |
| Max Drawdown | -59.4% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Nov 10, 2006 |
VBK vs VYM Performance
Vanguard Morningstar Small-Cap Growth ETF (VBK) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VBK returned +23.72% while VYM returned +22.18%. Year to date, VBK is up 16.27% versus a gain of 15.25% for VYM.
Over three years, VBK compounded at +17.57% per year against +18.83% for VYM; over five years the annualized figures are +5.02% and +12.09% respectively. Across the full 20-year window we track, VBK has the edge at +9.33% annualized vs +7.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBK has been the more volatile fund, with annualized monthly volatility of 19.6% 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 -59.4% for VBK 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VBK charges 0.05% per year while VYM charges 0.04%. On a $10,000 position that is $5 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VBK currently yields 0.45% against 2.24% for VYM.
Holdings Overlap
VBK and VYM share 53 holdings out of 1091 unique holdings combined, representing a 1.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VBK or VYM?
VBK has an expense ratio of 0.05% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VBK or VYM?
Over the past year VBK returned +23.72% vs +22.18% for VYM, so VBK leads on 1-year performance. Over the longest common window we track (20 years), VBK annualized +9.33% vs +7.03% for VYM. Past performance does not guarantee future results.
Which is riskier, VBK or VYM?
VBK has been the more volatile fund at 19.6% annualized versus 14.6% for VYM. Worst drawdown: VBK -59.4% vs VYM -58.8%.
Should I hold both VBK and VYM?
VBK and VYM have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBK and VYM?
VBK and VYM share 53 common holdings with a 1.5% weight overlap. Combined, they hold 1091 unique securities.
Which pays a higher dividend, VBK or VYM?
VBK yields 0.45% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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