VPU vs VYM
Vanguard Utilities ETF vs Vanguard High Dividend Yield ETF
Which is better, VPU or VYM?
VYM has been ahead.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 52.3%.
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
| Metric | VPU | VYM |
|---|---|---|
| Expense Ratio | 0.09% | 0.04%Best |
| AUM | $10.5B | $81.6B |
| Dividend Yield | 2.83% | 2.22% |
| Holdings | 68 | 613 |
| YTD Return | -3.14% | +11.71%Best |
| 1Y Return | +0.75% | +16.24%Best |
| 3Y Return (annualized) | +11.80% | +17.24%Best |
| 5Y Return (annualized) | +7.31% | +11.86%Best |
| Volatility (annualized) | 14.5%Best | 14.6% |
| Max Drawdown | -48.4%Best | -58.8% |
| $10,000 over 5 years | $14,230 | $17,514Best |
| Top 10 Weight | 52.3% | 26.1%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Jan 26, 2004 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 16, 2026 (19.8 years).
VPU 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.
VPU vs VYM Performance
Vanguard Utilities ETF (VPU) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VPU returned +0.75% while VYM returned +16.24%. Year to date, VPU is down 3.14% versus a gain of 11.71% for VYM.
Over three years, VPU compounded at +11.80% per year against +17.24% for VYM; over five years the annualized figures are +7.31% and +11.86% respectively. Across the full 20-year window we track, VYM has the edge at +6.84% annualized vs +5.34%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 14.5% for VPU. 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 -48.4% for VPU 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 0.58. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VPU charges 0.09% per year while VYM charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, VPU currently yields 2.83% against 2.22% for VYM.
Holdings Overlap
85.8% of VPU's money is in holdings VYM also owns. 5.5% of VYM's money is in holdings VPU also owns.
Most of VPU is already inside VYM. Owning both mostly buys the same companies twice.
49 positions in common, counted across the 69 positions we hold weights for in VPU and 557 in VYM, against full books of 68 and 613.
What only one of them owns
Measured across the 69 and 557 positions we hold weights for.
VYM holds 479 positions VPU does not, 91.6% of the fund.
Largest: AVGO 7.35%, JPM 3.82%, XOM 2.63%, JNJ 2.51%, CSCO 1.86%
Top Shared Holdings
| Stock | Weight in VPU | Weight in VYM | Difference |
|---|---|---|---|
| NEENextera Energy Inc | 11.82% | 0.74% | 11.08% |
| SOSouthern Co. | 6.95% | 0.43% | 6.52% |
| DUKDuke Energy Corp | 6.36% | 0.40% | 5.96% |
| AEPAmerican Electric Power Co Inc | 4.53% | 0.28% | 4.25% |
| DDominion Energy Inc. | 3.96% | 0.25% | 3.71% |
| SRESempra Common Stock | 3.77% | 0.24% | 3.53% |
| ETREntergy Corp. | 3.21% | 0.20% | 3.01% |
| XELXcel Energy Inc. | 3.18% | 0.20% | 2.98% |
| EXCExelon | 3.06% | 0.19% | 2.87% |
| EDConsolidated Edison Inc | 2.61% | 0.16% | 2.45% |
85.8% of VPU 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.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VPU or VYM?
VPU has an expense ratio of 0.09% while VYM charges 0.04%. VYM is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VPU or VYM?
Over the past year VPU returned +0.75% vs +16.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VPU annualized +5.34% vs +6.84% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VPU or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.5% for VPU. Worst drawdown: VPU -48.4% vs VYM -58.8%.
Should I hold both VPU and VYM?
VPU and VYM have a monthly-return correlation of 0.58, 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 VPU and VYM?
85.8% of VPU's money is in holdings VYM also owns. 5.5% of VYM's is in holdings VPU also owns. They hold 49 positions in common, counted across the 69 positions we hold weights for in VPU and 557 in VYM.
Which pays a higher dividend, VPU or VYM?
VPU yields 2.83% while VYM yields 2.22%, so VPU currently pays the higher dividend yield.
Is VYM better than VPU?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 52.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.