VPL vs VYM
Vanguard FTSE Pacific ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VPL delivered stronger 1-year returns. VPL offers more diversification with 2292 holdings.
Side-by-Side Comparison
| Metric | VPL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.04% | |
| AUM | $8.6B | $79.0B | |
| Dividend Yield | 2.64% | 2.86% | |
| Holdings | 2,361 | 568 | |
| YTD Return | +22.63% | +16.10% | |
| 1Y Return | +36.50% | +25.99% | |
| 3Y Return (annualized) | +21.31% | +18.29% | |
| 5Y Return (annualized) | +9.81% | +12.35% | |
| Volatility (annualized) | 16.4% | 14.6% | |
| Max Drawdown | -55.5% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 4, 2005 | Nov 10, 2006 |
VPL vs VYM Performance
Vanguard FTSE Pacific ETF (VPL) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VPL returned +36.50% while VYM returned +25.99%. Year to date, VPL is up 22.63% versus a gain of 16.10% for VYM.
Over three years, VPL compounded at +21.31% per year against +18.29% for VYM; over five years the annualized figures are +9.81% and +12.35% respectively. Across the full 20-year window we track, VYM has the edge at +7.08% annualized vs +6.72%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VPL has been the more volatile fund, with annualized monthly volatility of 16.4% 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 -55.5% for VPL 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VPL charges 0.07% per year while VYM charges 0.04%. On a $10,000 position that is $7 vs $4 annually, a gap of $3 per year that compounds over a long holding period. On income, VPL currently yields 2.64% against 2.86% for VYM.
Holdings Overlap
VPL and VYM share 4 holdings out of 2846 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VPL or VYM?
VPL has an expense ratio of 0.07% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VPL or VYM?
Over the past year VPL returned +36.50% vs +25.99% for VYM, so VPL leads on 1-year performance. Over the longest common window we track (20 years), VPL annualized +6.72% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, VPL or VYM?
VPL has been the more volatile fund at 16.4% annualized versus 14.6% for VYM. Worst drawdown: VPL -55.5% vs VYM -58.8%.
Should I hold both VPL and VYM?
VPL and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VPL and VYM?
VPL and VYM share 4 common holdings with a 0.4% weight overlap. Combined, they hold 2846 unique securities.
Which pays a higher dividend, VPL or VYM?
VPL yields 2.64% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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