VLUE vs VYM
iShares MSCI USA Value Factor ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VLUE delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | VLUE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.04% | |
| AUM | $9.9B | $81.6B | |
| Dividend Yield | 1.45% | 2.24% | |
| Holdings | 156 | 616 | |
| YTD Return | +47.09% | +16.42% | |
| 1Y Return | +75.81% | +24.22% | |
| 3Y Return (annualized) | +32.56% | +19.03% | |
| 5Y Return (annualized) | +17.07% | +12.21% | |
| Volatility (annualized) | 18.9% | 14.6% | |
| Max Drawdown | -39.5% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 16, 2013 | Nov 10, 2006 |
VLUE vs VYM Performance
iShares MSCI USA Value Factor ETF (VLUE) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VLUE returned +75.81% while VYM returned +24.22%. Year to date, VLUE is up 47.09% versus a gain of 16.42% for VYM.
Over three years, VLUE compounded at +32.56% per year against +19.03% for VYM; over five years the annualized figures are +17.07% and +12.21% respectively. Across the full 13-year window we track, VLUE has the edge at +12.41% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VLUE has been the more volatile fund, with annualized monthly volatility of 18.9% 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 -39.5% for VLUE 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VLUE charges 0.15% per year while VYM charges 0.04%. On a $10,000 position that is $15 vs $4 annually, a gap of $11 per year that compounds over a long holding period. On income, VLUE currently yields 1.45% against 2.24% for VYM.
Holdings Overlap
VLUE and VYM share 90 holdings out of 665 unique holdings combined, representing a 22.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VLUE or VYM?
VLUE has an expense ratio of 0.15% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, VLUE or VYM?
Over the past year VLUE returned +75.81% vs +24.22% for VYM, so VLUE leads on 1-year performance. Over the longest common window we track (13 years), VLUE annualized +12.41% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, VLUE or VYM?
VLUE has been the more volatile fund at 18.9% annualized versus 14.6% for VYM. Worst drawdown: VLUE -39.5% vs VYM -58.8%.
Should I hold both VLUE and VYM?
VLUE and VYM have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VLUE and VYM?
VLUE and VYM share 90 common holdings with a 22.3% weight overlap. Combined, they hold 665 unique securities.
Which pays a higher dividend, VLUE or VYM?
VLUE yields 1.45% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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