VO vs VYM

VO vs VYM

Which is better, VO or VYM?

Mid Cap Blend against Large Cap Value.

VO has a lower expense ratio. VO led over the full window, VYM over 1Y, 3Y and 5Y. VO is less concentrated, with 9.1% of the fund in its ten largest positions against 26.1%.

Lower Fees: VOHigher Returns: splitLess Concentrated: VO

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

MetricVOVYM
Expense Ratio0.03%Best0.04%
AUM$106.6B$81.6B
Dividend Yield1.30%2.22%
Holdings289613
YTD Return+10.11%+11.35%Best
1Y Return+11.13%+15.34%Best
3Y Return (annualized)+15.98%+17.22%Best
5Y Return (annualized)+7.59%+12.30%Best
Volatility (annualized)17.6%14.6%Best
Max Drawdown-60.3%-58.8%Best
$10,000 over 5 years$14,416$17,861Best
Top 10 Weight9.1%Best26.1%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
StyleMid Cap BlendLarge Cap Value
InceptionJan 26, 2004Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 18, 2026 (19.8 years).

VO 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 19.8 years both funds cover.

VO vs VYM Performance

Vanguard Morningstar Mid-Cap ETF (VO) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VO returned +11.13% while VYM returned +15.34%. Year to date, VO is up 10.11% versus a gain of 11.35% for VYM.

Over three years, VO compounded at +15.98% per year against +17.22% for VYM; over five years the annualized figures are +7.59% and +12.30% respectively. Across the full 20-year window we track, VO has the edge at +8.21% annualized vs +6.82%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VO has been the more volatile fund, with annualized monthly volatility of 17.6% 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 -60.3% for VO and -58.8% 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 0.89. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VO 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, VO currently yields 1.30% against 2.22% for VYM.

Holdings Overlap

VO already in VYM45.7%
VYM already in VO21.5%

45.7% of VO's money is in holdings VYM also owns. 21.5% of VYM's money is in holdings VO also owns.

The two portfolios partly overlap.

132 positions in common, counted across the 283 positions we hold weights for in VO and 557 in VYM, against full books of 289 and 613.

What only one of them owns

Our book lists 398 positions for VYM that do not appear in our book for VO (75.8% of the fund), and 144 for VO that do not appear in VYM (51.9%).

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

StockWeight in VOWeight in VYMDifference
VLOValero Energy0.89%0.38%0.51%
MPCMarathon Petroleum Corp0.89%0.38%0.51%
CMICummins Inc.0.84%0.36%0.48%
PSXPhillips 660.82%0.34%0.48%
RCLRoyal Caribbean Cruises0.74%0.32%0.42%
SLBSchlumberger Nv.0.71%0.30%0.41%
PCARPaccar Inc.0.67%0.28%0.39%
ALLAllstate Corp.0.65%0.27%0.38%
TGTTarget Corp Common Stock Usd.08330.63%0.27%0.36%
NEMNewmont Corp Common0.48%0.41%0.07%

45.7% of VO is already inside VYM.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

VOVYM

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Frequently Asked Questions

Which is cheaper, VO or VYM?

VO has an expense ratio of 0.03% while VYM charges 0.04%. VO is the cheaper option, by $1 a year on a $10,000 investment.

Which performed better, VO or VYM?

Over the past year VO returned +11.13% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VO annualized +8.21% vs +6.82% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, VO or VYM?

VO has been the more volatile fund at 17.6% annualized versus 14.6% for VYM. Worst drawdown: VO -60.3% vs VYM -58.8%.

Should I hold both VO and VYM?

VO and VYM have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between VO and VYM?

45.7% of VO's money is in holdings VYM also owns. 21.5% of VYM's is in holdings VO also owns. They hold 132 positions in common, counted across the 283 positions we hold weights for in VO and 557 in VYM.

Which pays a higher dividend, VO or VYM?

VO yields 1.30% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.

Is VYM better than VO?

VO has a lower expense ratio. VO led over the full window, VYM over 1Y, 3Y and 5Y. VO is less concentrated, with 9.1% 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.