VGLT vs VYM
Vanguard Long Term Treasury ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VGLT has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | VGLT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $10.3B | $81.6B | |
| Dividend Yield | 4.74% | 2.24% | |
| Holdings | 102 | 616 | |
| YTD Return | -1.21% | +15.25% | |
| 1Y Return | +1.14% | +22.18% | |
| 3Y Return (annualized) | +0.89% | +18.83% | |
| 5Y Return (annualized) | -6.56% | +12.09% | |
| Volatility (annualized) | 12.4% | 14.6% | |
| Max Drawdown | -47.1% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Nov 10, 2006 |
VGLT vs VYM Performance
Vanguard Long Term Treasury ETF (VGLT) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VGLT returned +1.14% while VYM returned +22.18%. Year to date, VGLT is down 1.21% versus a gain of 15.25% for VYM.
Over three years, VGLT compounded at +0.89% per year against +18.83% for VYM; over five years the annualized figures are -6.56% and +12.09% respectively. Across the full 17-year window we track, VYM has the edge at +7.03% annualized vs +0.42%. 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 12.4% for VGLT. 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 -47.1% for VGLT 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 -0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGLT 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, VGLT currently yields 4.74% against 2.24% for VYM.
Holdings Overlap
VGLT and VYM share 0 holdings out of 635 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, VGLT or VYM?
VGLT has an expense ratio of 0.03% while VYM charges 0.04%. VGLT is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VGLT or VYM?
Over the past year VGLT returned +1.14% vs +22.18% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), VGLT annualized +0.42% vs +7.03% for VYM. Past performance does not guarantee future results.
Which is riskier, VGLT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.4% for VGLT. Worst drawdown: VGLT -47.1% vs VYM -58.8%.
Should I hold both VGLT and VYM?
VGLT and VYM have a monthly-return correlation of -0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGLT and VYM?
VGLT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 635 unique securities.
Which pays a higher dividend, VGLT or VYM?
VGLT yields 4.74% while VYM yields 2.24%, so VGLT currently pays the higher dividend yield.
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