VFMO vs VYM
Vanguard US Momentum Factor ETF vs Vanguard High Dividend Yield ETF
Which is better, VFMO or VYM?
Mid Cap Growth against Large Cap Value.
VYM has a lower expense ratio. VFMO led over 1Y, 3Y, 5Y and the full window. VFMO is less concentrated, with 8.8% of the fund in its ten largest positions against 26.1%.
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 | VFMO | VYM |
|---|---|---|
| Expense Ratio | 0.13% | 0.04%Best |
| AUM | $1.9B | $81.6B |
| Dividend Yield | 0.62% | 2.22% |
| Holdings | 673 | 613 |
| YTD Return | +16.77%Best | +11.35% |
| 1Y Return | +19.22%Best | +15.34% |
| 3Y Return (annualized) | +25.85%Best | +17.22% |
| 5Y Return (annualized) | +13.34%Best | +12.30% |
| Volatility (annualized) | 20.2% | 15.1%Best |
| Max Drawdown | -36.8% | -35.7%Best |
| $10,000 over 5 years | $18,703Best | $17,861 |
| Top 10 Weight | 8.8%Best | 26.1% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Growth | Large Cap Value |
| Inception | Feb 13, 2018 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Feb 15, 2018 to Sep 18, 2026 (8.6 years).
VFMO 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 8.6 years both funds cover.
VFMO vs VYM Performance
Vanguard US Momentum Factor ETF (VFMO) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VFMO returned +19.22% while VYM returned +15.34%. Year to date, VFMO is up 16.77% versus a gain of 11.35% for VYM.
Over three years, VFMO compounded at +25.85% per year against +17.22% for VYM; over five years the annualized figures are +13.34% and +12.30% respectively. Across the full 9-year window we track, VFMO has the edge at +14.36% annualized vs +9.46%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VFMO has been the more volatile fund, with annualized monthly volatility of 20.2% compared with 15.1% 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 -36.8% for VFMO and -35.7% 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VFMO charges 0.13% per year while VYM charges 0.04%. On a $10,000 position that is $13 vs $4 annually, a gap of $9 per year that compounds over a long holding period. On income, VFMO currently yields 0.62% against 2.22% for VYM.
Holdings Overlap
27.8% of VFMO's money is in holdings VYM also owns. 34.5% of VYM's money is in holdings VFMO also owns.
The two portfolios partly overlap.
116 positions in common, counted across the 694 positions we hold weights for in VFMO and 557 in VYM, against full books of 673 and 613.
What only one of them owns
Our book lists 416 positions for VYM that do not appear in our book for VFMO (62.6% of the fund), and 521 for VFMO that do not appear in VYM (67.0%).
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 VFMO | Weight in VYM | Difference |
|---|---|---|---|
| JNJJohnson & Johnson - Common | 0.76% | 2.51% | 1.75% |
| XOMExxon Mobil Corp. | 0.59% | 2.63% | 2.04% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.50% | 1.86% | 1.36% |
| CATCaterpillar, Inc. | 0.62% | 1.50% | 0.88% |
| MRKMerck & Company Inc | 0.75% | 1.31% | 0.56% |
| ABBVAbbvie Inc. | 0.21% | 1.80% | 1.59% |
| UNHUnitedhealth Group Incorporated | 0.49% | 1.52% | 1.03% |
| KOCoca Cola Co. | 0.13% | 1.38% | 1.25% |
| TXNTexas Instrument Inc | 0.43% | 1.02% | 0.59% |
| MPCMarathon Petroleum Corp | 1.01% | 0.38% | 0.63% |
34.5% of VYM is already inside VFMO.
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, VFMO or VYM?
VFMO has an expense ratio of 0.13% while VYM charges 0.04%. VYM is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, VFMO or VYM?
Over the past year VFMO returned +19.22% vs +15.34% for VYM, so VFMO leads on 1-year performance. Over the longest common window we track (9 years), VFMO annualized +14.36% vs +9.46% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VFMO or VYM?
VFMO has been the more volatile fund at 20.2% annualized versus 15.1% for VYM. Worst drawdown: VFMO -36.8% vs VYM -35.7%.
Should I hold both VFMO and VYM?
VFMO and VYM have a monthly-return correlation of 0.80, 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 VFMO and VYM?
34.5% of VYM's money is in holdings VFMO also owns. 34.5% of VYM's is in holdings VFMO also owns. They hold 116 positions in common, counted across the 694 positions we hold weights for in VFMO and 557 in VYM.
Which pays a higher dividend, VFMO or VYM?
VFMO yields 0.62% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than VFMO?
VYM has a lower expense ratio. VFMO led over 1Y, 3Y, 5Y and the full window. VFMO is less concentrated, with 8.8% of the fund in its ten largest positions against 26.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.