VPC vs VYM
Virtus Private Credit Strategy ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VPC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 10.60% | 0.04% | |
| AUM | $30M | $79.0B | |
| Dividend Yield | 17.06% | 2.86% | |
| Holdings | 59 | 568 | |
| YTD Return | -6.49% | +15.80% | |
| 1Y Return | -9.64% | +26.12% | |
| 3Y Return (annualized) | +0.93% | +18.25% | |
| 5Y Return (annualized) | +1.83% | +12.51% | |
| Volatility (annualized) | 20.5% | 14.6% | |
| Max Drawdown | -55.3% | -58.8% | |
| Fund Family | Virtus Investment Partners | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 7, 2019 | Nov 10, 2006 |
VPC vs VYM Performance
Virtus Private Credit Strategy ETF (VPC) is a ETF from Virtus Investment Partners and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VPC returned -9.64% while VYM returned +26.12%. Year to date, VPC is down 6.49% versus a gain of 15.80% for VYM.
Over three years, VPC compounded at +0.93% per year against +18.25% for VYM; over five years the annualized figures are +1.83% and +12.51% respectively. Across the full 8-year window we track, VYM has the edge at +7.07% annualized vs +1.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VPC has been the more volatile fund, with annualized monthly volatility of 20.5% 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 -55.3% for VPC 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VPC charges 10.60% per year while VYM charges 0.04%. On a $10,000 position that is $1060 vs $4 annually, a gap of $1056 per year that compounds over a long holding period. On income, VPC currently yields 17.06% against 2.86% for VYM.
Holdings Overlap
VPC and VYM share 0 holdings out of 616 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, VPC or VYM?
VPC has an expense ratio of 10.60% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $1056 per year of difference.
Which performed better, VPC or VYM?
Over the past year VPC returned -9.64% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), VPC annualized +1.84% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, VPC or VYM?
VPC has been the more volatile fund at 20.5% annualized versus 14.6% for VYM. Worst drawdown: VPC -55.3% vs VYM -58.8%.
Should I hold both VPC and VYM?
VPC and VYM have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VPC and VYM?
VPC and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 616 unique securities.
Which pays a higher dividend, VPC or VYM?
VPC yields 17.06% while VYM yields 2.86%, so VPC currently pays the higher dividend yield.
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