VNQI vs VYM
Vanguard Global ex-US Real Estate ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VNQI offers more diversification with 747 holdings.
Side-by-Side Comparison
| Metric | VNQI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.04% | |
| AUM | $3.9B | $81.6B | |
| Dividend Yield | 4.62% | 2.24% | |
| Holdings | 747 | 616 | |
| YTD Return | -0.72% | +14.66% | |
| 1Y Return | +0.68% | +22.16% | |
| 3Y Return (annualized) | +10.00% | +18.72% | |
| 5Y Return (annualized) | -1.05% | +12.18% | |
| Volatility (annualized) | 16.3% | 14.6% | |
| Max Drawdown | -38.4% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 1, 2010 | Nov 10, 2006 |
VNQI vs VYM Performance
Vanguard Global ex-US Real Estate ETF (VNQI) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VNQI returned +0.68% while VYM returned +22.16%. Year to date, VNQI is down 0.72% versus a gain of 14.66% for VYM.
Over three years, VNQI compounded at +10.00% per year against +18.72% for VYM; over five years the annualized figures are -1.05% and +12.18% respectively. Across the full 16-year window we track, VYM has the edge at +7.01% annualized vs +3.36%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQI has been the more volatile fund, with annualized monthly volatility of 16.3% 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 -38.4% for VNQI 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VNQI 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, VNQI currently yields 4.62% against 2.24% for VYM.
Holdings Overlap
VNQI and VYM share 0 holdings out of 1309 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, VNQI or VYM?
VNQI has an expense ratio of 0.12% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, VNQI or VYM?
Over the past year VNQI returned +0.68% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (16 years), VNQI annualized +3.36% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, VNQI or VYM?
VNQI has been the more volatile fund at 16.3% annualized versus 14.6% for VYM. Worst drawdown: VNQI -38.4% vs VYM -58.8%.
Should I hold both VNQI and VYM?
VNQI and VYM have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VNQI and VYM?
VNQI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1309 unique securities.
Which pays a higher dividend, VNQI or VYM?
VNQI yields 4.62% while VYM yields 2.24%, so VNQI currently pays the higher dividend yield.
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