VFH vs VYM
Vanguard Financials ETF vs Vanguard High Dividend Yield ETF
Which is better, VFH or VYM?
Each has led over a different period.
VYM has a lower expense ratio. VFH led over 3Y, VYM over 1Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 46.6%.
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 | VFH | VYM |
|---|---|---|
| Expense Ratio | 0.09% | 0.04%Best |
| AUM | $14.9B | $81.6B |
| Dividend Yield | 1.67% | 2.22% |
| Holdings | 429 | 613 |
| YTD Return | +5.27% | +13.91%Best |
| 1Y Return | +7.49% | +17.57%Best |
| 3Y Return (annualized) | +20.70%Best | +18.12% |
| 5Y Return (annualized) | +10.57% | +12.17%Best |
| Volatility (annualized) | 21.4% | 14.5%Best |
| Max Drawdown | -79.9% | -58.8%Best |
| $10,000 over 5 years | $16,527 | $17,758Best |
| Top 10 Weight | 46.6% | 25.9%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 11, 2026 (19.8 years).
VFH 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.
VFH vs VYM Performance
Vanguard Financials ETF (VFH) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VFH returned +7.49% while VYM returned +17.57%. Year to date, VFH is up 5.27% versus a gain of 13.91% for VYM.
Over three years, VFH compounded at +20.70% per year against +18.12% for VYM; over five years the annualized figures are +10.57% and +12.17% respectively. Across the full 20-year window we track, VYM has the edge at +6.95% annualized vs +4.58%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFH has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 14.5% 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 -79.9% for VFH 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VFH 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, VFH currently yields 1.67% against 2.22% for VYM.
Holdings Overlap
58.1% of VFH's money is in holdings VYM also owns. 20.2% of VYM's money is in holdings VFH also owns.
The two portfolios partly overlap.
161 positions in common, counted across the 418 positions we hold weights for in VFH and 603 in VYM, against full books of 429 and 613.
What only one of them owns
Our book lists 409 positions for VYM that do not appear in our book for VFH (77.3% of the fund), and 213 for VFH that do not appear in VYM (40.8%).
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 VFH | Weight in VYM | Difference |
|---|---|---|---|
| JPMJpmorgan Chase & Co. | 10.45% | 3.38% | 7.07% |
| BACBank Of America Corp. | 4.66% | 1.56% | 3.10% |
| GSGoldman Sachs Group Inc. | 3.16% | 1.15% | 2.01% |
| WFCWells Fargo & Co. | 2.93% | 1.05% | 1.88% |
| MSMorgan Stanley | 2.76% | 0.97% | 1.79% |
| CCitigroup Inc. | 2.42% | 0.94% | 1.48% |
| BLKBlackrock Inc. | 1.78% | 0.61% | 1.17% |
| PGRProgressive Corp. | 1.37% | 0.53% | 0.84% |
| COFCapital One Financial Corp. | 1.38% | 0.52% | 0.86% |
| CBChubb Ltd. | 1.36% | 0.50% | 0.86% |
58.1% of VFH 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, VFH or VYM?
VFH 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, VFH or VYM?
Over the past year VFH returned +7.49% vs +17.57% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VFH annualized +4.58% vs +6.95% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VFH or VYM?
VFH has been the more volatile fund at 21.4% annualized versus 14.5% for VYM. Worst drawdown: VFH -79.9% vs VYM -58.8%.
Should I hold both VFH and VYM?
VFH and VYM have a monthly-return correlation of 0.90, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between VFH and VYM?
58.1% of VFH's money is in holdings VYM also owns. 20.2% of VYM's is in holdings VFH also owns. They hold 161 positions in common, counted across the 418 positions we hold weights for in VFH and 603 in VYM.
Which pays a higher dividend, VFH or VYM?
VFH yields 1.67% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than VFH?
VYM has a lower expense ratio. VFH led over 3Y, VYM over 1Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.90. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 46.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.