VGIT vs VYM
Vanguard Intermediate Term Treasury ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VGIT has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | VGIT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $42.4B | $81.6B | |
| Dividend Yield | 3.88% | 2.24% | |
| Holdings | 209 | 616 | |
| YTD Return | -0.37% | +15.42% | |
| 1Y Return | +1.47% | +22.36% | |
| 3Y Return (annualized) | +4.13% | +19.06% | |
| 5Y Return (annualized) | -0.09% | +12.20% | |
| Volatility (annualized) | 4.3% | 14.6% | |
| Max Drawdown | -17.2% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Nov 10, 2006 |
VGIT vs VYM Performance
Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VGIT returned +1.47% while VYM returned +22.36%. Year to date, VGIT is down 0.37% versus a gain of 15.42% for VYM.
Over three years, VGIT compounded at +4.13% per year against +19.06% for VYM; over five years the annualized figures are -0.09% and +12.20% respectively. Across the full 17-year window we track, VYM has the edge at +7.04% annualized vs +0.77%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 4.3% for VGIT. 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 -17.2% for VGIT 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 -0.06. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGIT charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VGIT currently yields 3.88% against 2.24% for VYM.
Holdings Overlap
VGIT and VYM share 0 holdings out of 687 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VGIT or VYM?
VGIT has an expense ratio of 0.03% while VYM charges 0.04%. VGIT is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VGIT or VYM?
Over the past year VGIT returned +1.47% vs +22.36% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), VGIT annualized +0.77% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, VGIT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 4.3% for VGIT. Worst drawdown: VGIT -17.2% vs VYM -58.8%.
Should I hold both VGIT and VYM?
VGIT and VYM have a monthly-return correlation of -0.06, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGIT and VYM?
VGIT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 687 unique securities.
Which pays a higher dividend, VGIT or VYM?
VGIT yields 3.88% while VYM yields 2.24%, so VGIT currently pays the higher dividend yield.
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