VDC vs VYM
Vanguard Consumer Staples ETF vs Vanguard High Dividend Yield ETF
Which is better, VDC or VYM?
Each has led over a different period.
VYM has a lower expense ratio. VDC led over the full window, VYM over 1Y, 3Y and 5Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 62.0%.
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 | VDC | VYM |
|---|---|---|
| Expense Ratio | 0.09% | 0.04%Best |
| AUM | $9.3B | $81.6B |
| Dividend Yield | 2.08% | 2.22% |
| Holdings | 106 | 613 |
| YTD Return | +6.86% | +11.47%Best |
| 1Y Return | +6.21% | +15.94%Best |
| 3Y Return (annualized) | +8.53% | +18.03%Best |
| 5Y Return (annualized) | +6.56% | +12.35%Best |
| Volatility (annualized) | 12.3%Best | 14.6% |
| Max Drawdown | -36.6%Best | -58.8% |
| $10,000 over 5 years | $13,740 | $17,901Best |
| Top 10 Weight | 62.0% | 26.1%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large 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 21, 2026 (19.8 years).
VDC 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.
VDC vs VYM Performance
Vanguard Consumer Staples ETF (VDC) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VDC returned +6.21% while VYM returned +15.94%. Year to date, VDC is up 6.86% versus a gain of 11.47% for VYM.
Over three years, VDC compounded at +8.53% per year against +18.03% for VYM; over five years the annualized figures are +6.56% and +12.35% respectively. Across the full 20-year window we track, VDC has the edge at +7.24% annualized vs +6.82%.
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 12.3% for VDC. 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 -36.6% for VDC 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VDC charges 0.09% per year while VYM charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, VDC currently yields 2.08% against 2.22% for VYM.
Holdings Overlap
57.6% of VDC's money is in holdings VYM also owns. 8.2% of VYM's money is in holdings VDC also owns.
The two portfolios partly overlap.
43 positions in common, counted across the 104 positions we hold weights for in VDC and 557 in VYM, against full books of 106 and 613.
What only one of them owns
Our book lists 488 positions for VYM that do not appear in our book for VDC (88.9% of the fund), and 60 for VDC that do not appear in VYM (42.2%).
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 VDC | Weight in VYM | Difference |
|---|---|---|---|
| KOCoca Cola Co. | 8.53% | 1.38% | 7.15% |
| PGProcter & Gamble Company | 8.51% | 1.37% | 7.14% |
| PMPhilip Morris International Inc. | 4.56% | 1.21% | 3.35% |
| PEPPepsico Inc. | 4.25% | 0.77% | 3.48% |
| MOAltria Group Inc | 3.72% | 0.46% | 3.26% |
| MDLZMondelez International Inc Com A Npv | 2.66% | 0.32% | 2.34% |
| CLColgate-Palmolive Co | 2.34% | 0.29% | 2.05% |
| TGTTarget Corp Common Stock Usd.0833 | 2.24% | 0.27% | 1.97% |
| SYYSysco Corp | 1.47% | 0.17% | 1.30% |
| KDPKeurig Dr Pepper Inc (kdp Us) | 1.44% | 0.16% | 1.28% |
57.6% of VDC 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.
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Frequently Asked Questions
Which is cheaper, VDC or VYM?
VDC has an expense ratio of 0.09% while VYM charges 0.04%. VYM is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VDC or VYM?
Over the past year VDC returned +6.21% vs +15.94% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VDC annualized +7.24% vs +6.82% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VDC or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.3% for VDC. Worst drawdown: VDC -36.6% vs VYM -58.8%.
Should I hold both VDC and VYM?
VDC and VYM have a monthly-return correlation of 0.82, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VDC and VYM?
57.6% of VDC's money is in holdings VYM also owns. 8.2% of VYM's is in holdings VDC also owns. They hold 43 positions in common, counted across the 104 positions we hold weights for in VDC and 557 in VYM.
Which pays a higher dividend, VDC or VYM?
VDC yields 2.08% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than VDC?
VYM has a lower expense ratio. VDC led over the full window, VYM over 1Y, 3Y and 5Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 62.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.