VCRM vs VYM
Vanguard Core Tax-Exempt Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VCRM offers more diversification with 3,675 holdings.
Side-by-Side Comparison
| Metric | VCRM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.04% | |
| AUM | $1.7B | $81.6B | |
| Dividend Yield | 3.69% | 2.24% | |
| Holdings | 3,675 | 616 | |
| YTD Return | -0.53% | +16.42% | |
| 1Y Return | +4.09% | +24.22% | |
| 3Y Return (annualized) | - | +19.03% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 4.1% | 14.6% | |
| Max Drawdown | -3.8% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 19, 2024 | Nov 10, 2006 |
VCRM vs VYM Performance
Vanguard Core Tax-Exempt Bond ETF (VCRM) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VCRM returned +4.09% while VYM returned +24.22%. Year to date, VCRM is down 0.53% versus a gain of 16.42% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 4.1% for VCRM. 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 -3.8% for VCRM 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCRM charges 0.12% per year while VYM charges 0.04%. On a $10,000 position that is $12 vs $4 annually, a gap of $8 per year that compounds over a long holding period. On income, VCRM currently yields 3.69% against 2.24% for VYM.
Holdings Overlap
VCRM and VYM share 0 holdings out of 793 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VCRM or VYM?
VCRM has an expense ratio of 0.12% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, VCRM or VYM?
Over the past year VCRM returned +4.09% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), VCRM annualized +2.86% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, VCRM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.1% for VCRM. Worst drawdown: VCRM -3.8% vs VYM -58.8%.
Should I hold both VCRM and VYM?
VCRM and VYM have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCRM and VYM?
VCRM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 793 unique securities.
Which pays a higher dividend, VCRM or VYM?
VCRM yields 3.69% while VYM yields 2.24%, so VCRM currently pays the higher dividend yield.
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