VGT vs VYM
Vanguard Information Technology ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VGT delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | VGT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.04% | |
| AUM | $138.8B | $81.6B | |
| Dividend Yield | 0.38% | 2.24% | |
| Holdings | 324 | 616 | |
| YTD Return | +29.30% | +14.95% | |
| 1Y Return | +39.76% | +21.14% | |
| 3Y Return (annualized) | +32.12% | +18.69% | |
| 5Y Return (annualized) | +18.85% | +12.00% | |
| Volatility (annualized) | 19.6% | 14.6% | |
| Max Drawdown | -54.8% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Nov 10, 2006 |
VGT vs VYM Performance
Vanguard Information Technology ETF (VGT) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VGT returned +39.76% while VYM returned +21.14%. Year to date, VGT is up 29.30% versus a gain of 14.95% for VYM.
Over three years, VGT compounded at +32.12% per year against +18.69% for VYM; over five years the annualized figures are +18.85% and +12.00% respectively. Across the full 20-year window we track, VGT has the edge at +14.34% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VGT has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 14.6% 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 -54.8% for VGT 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGT charges 0.09% per year while VYM charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, VGT currently yields 0.38% against 2.24% for VYM.
Holdings Overlap
VGT and VYM share 29 holdings out of 896 unique holdings combined, representing a 12.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VGT or VYM?
VGT has an expense ratio of 0.09% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VGT or VYM?
Over the past year VGT returned +39.76% vs +21.14% for VYM, so VGT leads on 1-year performance. Over the longest common window we track (20 years), VGT annualized +14.34% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, VGT or VYM?
VGT has been the more volatile fund at 19.6% annualized versus 14.6% for VYM. Worst drawdown: VGT -54.8% vs VYM -58.8%.
Should I hold both VGT and VYM?
VGT and VYM have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGT and VYM?
VGT and VYM share 29 common holdings with a 12.6% weight overlap. Combined, they hold 896 unique securities.
Which pays a higher dividend, VGT or VYM?
VGT yields 0.38% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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