VCLT vs VYM
Vanguard Long Term Corporate Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VCLT has a lower expense ratio. VYM delivered stronger 1-year returns. VCLT offers more diversification with 2,856 holdings.
Side-by-Side Comparison
| Metric | VCLT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $8.8B | $81.6B | |
| Dividend Yield | 5.76% | 2.24% | |
| Holdings | 2,856 | 613 | |
| YTD Return | -2.02% | +15.29% | |
| 1Y Return | -0.01% | +22.23% | |
| 3Y Return (annualized) | +5.27% | +18.81% | |
| 5Y Return (annualized) | -2.78% | +12.14% | |
| Volatility (annualized) | 10.7% | 14.5% | |
| Max Drawdown | -35.1% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Nov 10, 2006 |
VCLT vs VYM Performance
Vanguard Long Term Corporate Bond ETF (VCLT) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VCLT returned -0.01% while VYM returned +22.23%. Year to date, VCLT is down 2.02% versus a gain of 15.29% for VYM.
Over three years, VCLT compounded at +5.27% per year against +18.81% for VYM; over five years the annualized figures are -2.78% and +12.14% respectively. Across the full 17-year window we track, VYM has the edge at +7.02% annualized vs +1.43%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 10.7% for VCLT. 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 -35.1% for VCLT 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCLT charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VCLT currently yields 5.76% against 2.24% for VYM.
Holdings Overlap
VCLT and VYM share 1 holdings out of 901 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VCLT | Weight in VYM | Difference |
|---|---|---|---|
| UNP | 0.05% | 0.67% | 0.62% |
Frequently Asked Questions
Which is cheaper, VCLT or VYM?
VCLT has an expense ratio of 0.03% while VYM charges 0.04%. VCLT is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VCLT or VYM?
Over the past year VCLT returned -0.01% vs +22.23% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), VCLT annualized +1.43% vs +7.02% for VYM. Past performance does not guarantee future results.
Which is riskier, VCLT or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 10.7% for VCLT. Worst drawdown: VCLT -35.1% vs VYM -58.8%.
Should I hold both VCLT and VYM?
VCLT and VYM have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCLT and VYM?
VCLT and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 901 unique securities.
Which pays a higher dividend, VCLT or VYM?
VCLT yields 5.76% while VYM yields 2.24%, so VCLT currently pays the higher dividend yield.
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