VFIAX vs VYM
Vanguard 500 Index Fund Admiral Class vs Vanguard High Dividend Yield ETF
Which is better, VFIAX or VYM?
Large Cap Blend against Large Cap Value.
VFIAX led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 36.3%.
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 | VFIAX | VYM |
|---|---|---|
| Expense Ratio | 0.04%Tie | 0.04%Tie |
| AUM | $677.6B | $81.6B |
| Dividend Yield | 1.03% | 2.22% |
| Holdings | 506 | 613 |
| YTD Price Return | +10.80%Best | +10.38% |
| 1Y Price Return | +14.62%Best | +13.42% |
| 3Y Price Return (annualized) | +19.44%Best | +14.30% |
| 5Y Price Return (annualized) | +11.33%Best | +8.65% |
| Volatility (annualized) | 15.6% | 14.0%Best |
| Max Drawdown | -25.4% | -17.5%Best |
| $10,000 over 5 years | $17,103Best | $15,141 |
| Top 10 Weight | 36.3% | 26.1%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Nov 13, 2000 | Nov 10, 2006 |
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VFIAX. Both funds are measured the same way, so the comparison holds. VFIAX yields 1.03% and VYM 2.22% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 17, 2021 to Sep 15, 2026 (5 years).
VFIAX 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
VFIAX vs VYM Performance
Vanguard 500 Index Fund Admiral Class (VFIAX) is a mutual fund from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VFIAX returned +14.62% while VYM returned +13.42%. Year to date, VFIAX is up 10.80% versus a gain of 10.38% for VYM.
Over three years, VFIAX compounded at +19.44% per year against +14.30% for VYM; over five years the annualized figures are +11.33% and +8.65% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFIAX has been the more volatile fund, with annualized monthly volatility of 15.6% compared with 14.0% 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 -25.4% for VFIAX and -17.5% 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
VFIAX charges 0.04% per year while VYM charges 0.04%. On a $10,000 position that is $4 vs $4 annually. On income, VFIAX currently yields 1.03% against 2.22% for VYM.
Structure and taxes
VFIAX is a mutual fund and VYM is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
32.4% of VFIAX's money is in holdings VYM also owns. 86.4% of VYM's money is in holdings VFIAX also owns.
Most of VYM is already inside VFIAX. Owning both mostly buys the same companies twice.
245 positions in common, counted across the 500 positions we hold weights for in VFIAX and 557 in VYM, against full books of 506 and 613.
What only one of them owns
Our book lists 283 positions for VYM that do not appear in our book for VFIAX (10.7% of the fund), and 249 for VFIAX that do not appear in VYM (64.4%).
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 VFIAX | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 2.77% | 7.35% | 4.58% |
| JPMJpmorgan Chase | 1.25% | 3.82% | 2.57% |
| JNJJohnson & Johnson - Common | 0.95% | 2.51% | 1.56% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.72% | 1.86% | 1.14% |
| ABBVAbbvie Inc. | 0.69% | 1.80% | 1.11% |
| CATCaterpillar, Inc. | 0.76% | 1.50% | 0.74% |
| BACBank of America Corp.: Financials | 0.58% | 1.66% | 1.08% |
| UNHUnitedhealth Group Incorporated | 0.58% | 1.52% | 0.94% |
| CVXChevron Corp | 0.48% | 1.48% | 1.00% |
| PGProcter & Gamble Company | 0.53% | 1.37% | 0.84% |
86.4% of VYM is already inside VFIAX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VFIAX or VYM?
VFIAX has an expense ratio of 0.04% while VYM charges 0.04%. At the precision these are quoted to, they cost the same.
Which performed better, VFIAX or VYM?
Over the past year VFIAX returned +14.62% vs +13.42% for VYM, so VFIAX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VFIAX or VYM?
VFIAX has been the more volatile fund at 15.6% annualized versus 14.0% for VYM. Worst drawdown: VFIAX -25.4% vs VYM -17.5%.
Should I hold both VFIAX and VYM?
VFIAX 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 VFIAX and VYM?
86.4% of VYM's money is in holdings VFIAX also owns. 86.4% of VYM's is in holdings VFIAX also owns. They hold 245 positions in common, counted across the 500 positions we hold weights for in VFIAX and 557 in VYM.
Which pays a higher dividend, VFIAX or VYM?
VFIAX yields 1.03% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is it better to hold VFIAX or VYM in a taxable account?
VYM is an ETF and VFIAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VYM better than VFIAX?
VFIAX led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 36.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.