VBR vs VYM
Vanguard Morningstar Small-Cap Value ETF vs Vanguard High Dividend Yield ETF
Which is better, VBR or VYM?
Small Cap Value against Large Cap Value.
VYM has a lower expense ratio. VBR led over 1Y, VYM over 3Y and 5Y. The two have moved almost in lockstep, correlation 0.91. VBR is less concentrated, with 5.9% 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 | VBR | VYM |
|---|---|---|
| Expense Ratio | 0.05% | 0.04%Best |
| AUM | $37.3B | $81.6B |
| Dividend Yield | 1.76% | 2.22% |
| Holdings | 847 | 613 |
| YTD Return | +12.53%Best | +11.71% |
| 1Y Return | +16.52%Best | +16.24% |
| 3Y Return (annualized) | +15.76% | +17.24%Best |
| 5Y Return (annualized) | +9.17% | +11.86%Best |
| Volatility (annualized) | 19.8% | 14.6%Best |
| Max Drawdown | -64.0% | -58.8%Best |
| $10,000 over 5 years | $15,507 | $17,514Best |
| Top 10 Weight | 5.9%Best | 26.1% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Value | 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 16, 2026 (19.8 years).
VBR 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.
VBR vs VYM Performance
Vanguard Morningstar Small-Cap Value ETF (VBR) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VBR returned +16.52% while VYM returned +16.24%. Year to date, VBR is up 12.53% versus a gain of 11.71% for VYM.
Over three years, VBR compounded at +15.76% per year against +17.24% for VYM; over five years the annualized figures are +9.17% and +11.86% respectively. Across the full 20-year window we track, VBR has the edge at +6.84% annualized vs +6.84%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VBR has been the more volatile fund, with annualized monthly volatility of 19.8% 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 -64.0% for VBR 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VBR 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, VBR currently yields 1.76% against 2.22% for VYM.
Holdings Overlap
42.9% of VBR's money is in holdings VYM also owns. 9.0% of VYM's money is in holdings VBR also owns.
The two portfolios partly overlap.
299 positions in common, counted across the 836 positions we hold weights for in VBR and 557 in VYM, against full books of 847 and 613.
What only one of them owns
Our book lists 241 positions for VYM that do not appear in our book for VBR (88.2% of the fund), and 506 for VBR that do not appear in VYM (54.5%).
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 VBR | Weight in VYM | Difference |
|---|---|---|---|
| NRGNrg Energy | 0.66% | 0.11% | 0.55% |
| TPRTapestry Inc. | 0.63% | 0.13% | 0.50% |
| ATOAtmos Energy Corp | 0.61% | 0.12% | 0.49% |
| WSMWilliams-sonoma Inc | 0.59% | 0.11% | 0.48% |
| SWR:IESmurfit Westrock Plc | 0.52% | 0.10% | 0.42% |
| EXEExpand Energy Corp | 0.47% | 0.09% | 0.38% |
| OMCOmnicom Group Inc. | 0.44% | 0.09% | 0.35% |
| CHRWCH Robinson Worldwide | 0.45% | 0.07% | 0.38% |
| RSReliance Steel & Aluminum Co. | 0.41% | 0.08% | 0.33% |
| DDDupont De Nemours Inc Npv | 0.40% | 0.08% | 0.32% |
42.9% of VBR 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, VBR or VYM?
VBR has an expense ratio of 0.05% while VYM charges 0.04%. VYM is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VBR or VYM?
Over the past year VBR returned +16.52% vs +16.24% for VYM, so VBR leads on 1-year performance. Over the longest common window we track (20 years), VBR annualized +6.84% vs +6.84% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBR or VYM?
VBR has been the more volatile fund at 19.8% annualized versus 14.6% for VYM. Worst drawdown: VBR -64.0% vs VYM -58.8%.
Should I hold both VBR and VYM?
VBR and VYM have a monthly-return correlation of 0.91, 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 VBR and VYM?
42.9% of VBR's money is in holdings VYM also owns. 9.0% of VYM's is in holdings VBR also owns. They hold 299 positions in common, counted across the 836 positions we hold weights for in VBR and 557 in VYM.
Which pays a higher dividend, VBR or VYM?
VBR yields 1.76% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than VBR?
VYM has a lower expense ratio. VBR led over 1Y, VYM over 3Y and 5Y. The two have moved almost in lockstep, correlation 0.91. VBR is less concentrated, with 5.9% 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.