VGI vs VYM

VGI vs VYM

Which is better, VGI or VYM?

Diversified Sectoral Bond against Large Cap Value.

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VYMHigher Returns: VYM

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

MetricVGIVYM
Expense Ratio1.74%0.04%Best
AUM$84M$95.8B
Dividend Yield12.97%2.23%
Holdings759610
YTD Return-1.68%+14.40%Best
1Y Return-0.42%+18.20%Best
3Y Return (annualized)+12.55%+19.83%Best
5Y Return (annualized)+1.13%+11.26%Best
Volatility (annualized)14.2%13.1%Best
Max Drawdown-63.3%-35.7%Best
$10,000 over 5 years$10,578$17,049Best
Fund FamilyVirtus Investment PartnersVanguard (US)
CategoryFixed IncomeEquity
StyleDiversified Sectoral BondLarge Cap Value
InceptionFeb 23, 2012Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Feb 24, 2012 to Nov 9, 2026 (14.7 years).

VGI 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 14.7 years both funds cover.

VGI vs VYM Performance

Virtus Global Multi-Sector Income Fund (VGI) is an ETF from Virtus Investment Partners and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VGI returned -0.42% while VYM returned +18.20%. Year to date, VGI is down 1.68% versus a gain of 14.40% for VYM.

Over three years, VGI compounded at +12.55% per year against +19.83% for VYM; over five years the annualized figures are +1.13% and +11.26% respectively. Across the full 15-year window we track, VYM has the edge at +9.96% annualized vs -2.55%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VGI has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 13.1% 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 -63.3% for VGI 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 0.64. They move together some of the time, and apart the rest.

Fees and Cost Over Time

VGI charges 1.74% per year while VYM charges 0.04%. On a $10,000 position that is $174 vs $4 annually, a gap of $170 per year that compounds over a long holding period. On income, VGI currently yields 12.97% against 2.23% for VYM.

Holdings Overlap

VYM already in VGI0.1%

At least 0.1% of VYM's money is in holdings VGI also owns.

Stated as a floor: for VGI, our book for it covers 90.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 437 positions we hold weights for in VGI and 602 in VYM, against full books of 759 and 610.

Top Shared Holdings

StockWeight in VGIWeight in VYMDifference
ARESAres Management Corp Preferred Stock 10/27 6.750.02%0.11%0.09%

You are not choosing between two funds in isolation.

Whichever of VGI and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

VGIVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, VGI or VYM?

VGI has an expense ratio of 1.74% while VYM charges 0.04%. VYM is the cheaper option, by $170 a year on a $10,000 investment.

Which performed better, VGI or VYM?

Over the past year VGI returned -0.42% vs +18.20% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), VGI annualized -2.55% vs +9.96% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, VGI or VYM?

VGI has been the more volatile fund at 14.2% annualized versus 13.1% for VYM. Worst drawdown: VGI -63.3% vs VYM -35.7%.

Should I hold both VGI and VYM?

VGI and VYM have a monthly-return correlation of 0.64, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, VGI or VYM?

VGI yields 12.97% while VYM yields 2.23%, so VGI currently pays the higher dividend yield.

Is VYM better than VGI?

VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.