VOE vs VYM
Vanguard Morningstar Mid-Cap Value ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VOE delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | VOE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.04% | |
| AUM | $23.9B | $81.6B | |
| Dividend Yield | 1.81% | 2.24% | |
| Holdings | 176 | 616 | |
| YTD Return | +17.24% | +14.84% | |
| 1Y Return | +22.74% | +20.88% | |
| 3Y Return (annualized) | +17.10% | +18.34% | |
| 5Y Return (annualized) | +9.86% | +12.04% | |
| Volatility (annualized) | 17.6% | 14.6% | |
| Max Drawdown | -63.4% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 17, 2006 | Nov 10, 2006 |
VOE vs VYM Performance
Vanguard Morningstar Mid-Cap Value ETF (VOE) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VOE returned +22.74% while VYM returned +20.88%. Year to date, VOE is up 17.24% versus a gain of 14.84% for VYM.
Over three years, VOE compounded at +17.10% per year against +18.34% for VYM; over five years the annualized figures are +9.86% and +12.04% respectively. Across the full 20-year window we track, VOE has the edge at +7.94% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOE 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 -63.4% for VOE 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VOE charges 0.05% per year while VYM charges 0.04%. On a $10,000 position that is $5 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VOE currently yields 1.81% against 2.24% for VYM.
Holdings Overlap
VOE and VYM share 112 holdings out of 660 unique holdings combined, representing a 18.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VOE or VYM?
VOE has an expense ratio of 0.05% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VOE or VYM?
Over the past year VOE returned +22.74% vs +20.88% for VYM, so VOE leads on 1-year performance. Over the longest common window we track (20 years), VOE annualized +7.94% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, VOE or VYM?
VOE has been the more volatile fund at 17.6% annualized versus 14.6% for VYM. Worst drawdown: VOE -63.4% vs VYM -58.8%.
Should I hold both VOE and VYM?
VOE and VYM have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VOE and VYM?
VOE and VYM share 112 common holdings with a 18.0% weight overlap. Combined, they hold 660 unique securities.
Which pays a higher dividend, VOE or VYM?
VOE yields 1.81% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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