VCV vs VYM
VCV vs VYM
Invesco California Value Municipal Income Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VCV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 3.57% | 0.04% | |
| AUM | $3,027.72 | $79.0B | |
| Dividend Yield | 7.48% | 2.86% | |
| Holdings | 346 | 568 | |
| YTD Return | -0.80% | +15.80% | |
| 1Y Return | +11.42% | +26.12% | |
| 3Y Return (annualized) | +10.41% | +18.25% | |
| 5Y Return (annualized) | -0.10% | +12.51% | |
| Volatility (annualized) | 14.3% | 14.6% | |
| Max Drawdown | -63.9% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 30, 1993 | Nov 10, 2006 |
VCV vs VYM Performance
Invesco California Value Municipal Income Trust (VCV) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VCV returned +11.42% while VYM returned +26.12%. Year to date, VCV is down 0.80% versus a gain of 15.80% for VYM.
Over three years, VCV compounded at +10.41% per year against +18.25% for VYM; over five years the annualized figures are -0.10% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs +0.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.3% for VCV. 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 -63.9% for VCV 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VCV charges 3.57% per year while VYM charges 0.04%. On a $10,000 position that is $357 vs $4 annually, a gap of $353 per year that compounds over a long holding period. On income, VCV currently yields 7.48% against 2.86% for VYM.
Holdings Overlap
VCV and VYM share 0 holdings out of 646 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, VCV or VYM?
VCV has an expense ratio of 3.57% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $353 per year of difference.
Which performed better, VCV or VYM?
Over the past year VCV returned +11.42% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VCV annualized +0.50% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, VCV or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.3% for VCV. Worst drawdown: VCV -63.9% vs VYM -58.8%.
Should I hold both VCV and VYM?
VCV and VYM have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VCV and VYM?
VCV and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 646 unique securities.
Which pays a higher dividend, VCV or VYM?
VCV yields 7.48% while VYM yields 2.86%, so VCV currently pays the higher dividend yield.
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