VEGI vs VYM
iShares MSCI Agriculture Producers ETF 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 616 holdings.
Side-by-Side Comparison
| Metric | VEGI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.04% | |
| AUM | $147M | $81.6B | |
| Dividend Yield | 1.89% | 2.24% | |
| Holdings | 159 | 616 | |
| YTD Return | +14.33% | +15.75% | |
| 1Y Return | +12.96% | +23.85% | |
| 3Y Return (annualized) | +6.68% | +19.14% | |
| 5Y Return (annualized) | +4.57% | +12.45% | |
| Volatility (annualized) | 16.0% | 14.6% | |
| Max Drawdown | -39.7% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 31, 2012 | Nov 10, 2006 |
VEGI vs VYM Performance
iShares MSCI Agriculture Producers ETF (VEGI) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VEGI returned +12.96% while VYM returned +23.85%. Year to date, VEGI is up 14.33% versus a gain of 15.75% for VYM.
Over three years, VEGI compounded at +6.68% per year against +19.14% for VYM; over five years the annualized figures are +4.57% and +12.45% respectively. Across the full 15-year window we track, VYM has the edge at +7.06% annualized vs +4.66%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VEGI has been the more volatile fund, with annualized monthly volatility of 16.0% 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 -39.7% for VEGI 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VEGI charges 0.39% per year while VYM charges 0.04%. On a $10,000 position that is $39 vs $4 annually, a gap of $35 per year that compounds over a long holding period. On income, VEGI currently yields 1.89% against 2.24% for VYM.
Holdings Overlap
VEGI and VYM share 12 holdings out of 720 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VEGI or VYM?
VEGI has an expense ratio of 0.39% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, VEGI or VYM?
Over the past year VEGI returned +12.96% vs +23.85% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), VEGI annualized +4.66% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, VEGI or VYM?
VEGI has been the more volatile fund at 16.0% annualized versus 14.6% for VYM. Worst drawdown: VEGI -39.7% vs VYM -58.8%.
Should I hold both VEGI and VYM?
VEGI and VYM have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEGI and VYM?
VEGI and VYM share 12 common holdings with a 0.5% weight overlap. Combined, they hold 720 unique securities.
Which pays a higher dividend, VEGI or VYM?
VEGI yields 1.89% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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