VLU vs VYM
State Street SPDR S&P 1500 Value Tilt ETF vs Vanguard High Dividend Yield ETF
Which is better, VLU or VYM?
VLU has been ahead.
VYM has a lower expense ratio. VLU led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. VLU is less concentrated, with 18.4% 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 | VLU | VYM |
|---|---|---|
| Expense Ratio | 0.12% | 0.04%Best |
| AUM | $761M | $81.6B |
| Dividend Yield | 1.57% | 2.22% |
| Holdings | 1,476 | 613 |
| YTD Return | +16.70%Best | +12.29% |
| 1Y Return | +22.74%Best | +16.61% |
| 3Y Return (annualized) | +19.97%Best | +17.42% |
| 5Y Return (annualized) | +12.97%Best | +12.12% |
| Volatility (annualized) | 15.8% | 13.2%Best |
| Max Drawdown | -37.9% | -35.7%Best |
| $10,000 over 5 years | $18,400Best | $17,718 |
| Top 10 Weight | 18.4%Best | 26.1% |
| Fund Family | State Street Investment Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Oct 24, 2012 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Oct 25, 2012 to Sep 17, 2026 (13.9 years).
VLU 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 13.9 years both funds cover.
VLU vs VYM Performance
State Street SPDR S&P 1500 Value Tilt ETF (VLU) is an ETF from State Street Investment Management and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VLU returned +22.74% while VYM returned +16.61%. Year to date, VLU is up 16.70% versus a gain of 12.29% for VYM.
Over three years, VLU compounded at +19.97% per year against +17.42% for VYM; over five years the annualized figures are +12.97% and +12.12% respectively. Across the full 14-year window we track, VLU has the edge at +11.50% annualized vs +10.03%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VLU has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 13.2% 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 -37.9% for VLU 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VLU charges 0.12% per year while VYM charges 0.04%. On a $10,000 position that is $12 vs $4 annually, a gap of $8 per year that compounds over a long holding period. On income, VLU currently yields 1.57% against 2.22% for VYM.
Holdings Overlap
53.0% of VLU's money is in holdings VYM also owns. 94.3% of VYM's money is in holdings VLU also owns.
Most of VYM is already inside VLU. Owning both mostly buys the same companies twice.
504 positions in common, counted across the 1,454 positions we hold weights for in VLU and 557 in VYM, against full books of 1,476 and 613.
What only one of them owns
Our book lists 37 positions for VYM that do not appear in our book for VLU (3.3% of the fund), and 761 for VLU that do not appear in VYM (45.3%).
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 VLU | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 0.46% | 7.35% | 6.89% |
| JPMJpmorgan Chase | 1.52% | 3.82% | 2.30% |
| XOMExxon Mobil Corp. | 1.25% | 2.63% | 1.38% |
| JNJJohnson & Johnson - Common | 0.69% | 2.51% | 1.82% |
| UNHUnitedhealth Group Incorporated | 1.29% | 1.52% | 0.23% |
| CVXChevron Corp | 1.00% | 1.48% | 0.48% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.52% | 1.86% | 1.34% |
| ABBVAbbvie Inc. | 0.45% | 1.80% | 1.35% |
| VZVerizon Communic | 1.43% | 0.80% | 0.63% |
| MRKMerck & Company Inc | 0.58% | 1.31% | 0.73% |
94.3% of VYM is already inside VLU.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VLU or VYM?
VLU has an expense ratio of 0.12% while VYM charges 0.04%. VYM is the cheaper option, by $8 a year on a $10,000 investment.
Which performed better, VLU or VYM?
Over the past year VLU returned +22.74% vs +16.61% for VYM, so VLU leads on 1-year performance. Over the longest common window we track (14 years), VLU annualized +11.50% vs +10.03% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VLU or VYM?
VLU has been the more volatile fund at 15.8% annualized versus 13.2% for VYM. Worst drawdown: VLU -37.9% vs VYM -35.7%.
Should I hold both VLU and VYM?
VLU and VYM have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between VLU and VYM?
94.3% of VYM's money is in holdings VLU also owns. 94.3% of VYM's is in holdings VLU also owns. They hold 504 positions in common, counted across the 1,454 positions we hold weights for in VLU and 557 in VYM.
Which pays a higher dividend, VLU or VYM?
VLU yields 1.57% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than VLU?
VYM has a lower expense ratio. VLU led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. VLU is less concentrated, with 18.4% 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.