VRP vs VYM
Invesco Variable Rate Preferred ETF vs Vanguard High Dividend Yield ETF
Which is better, VRP or VYM?
Preferred Stock against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
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 | VRP | VYM |
|---|---|---|
| Expense Ratio | 0.50% | 0.04%Best |
| AUM | $3.0B | $81.6B |
| Dividend Yield | 6.09% | 2.22% |
| Holdings | 343 | 613 |
| YTD Return | +1.93% | +11.35%Best |
| 1Y Return | +2.72% | +15.34%Best |
| 3Y Return (annualized) | +8.41% | +17.22%Best |
| 5Y Return (annualized) | +4.03% | +12.30%Best |
| Volatility (annualized) | 7.4%Best | 13.7% |
| Max Drawdown | -46.2% | -35.7%Best |
| $10,000 over 5 years | $12,184 | $17,861Best |
| Fund Family | Invesco (US) | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Value |
| Inception | May 1, 2014 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 1, 2014 to Sep 18, 2026 (12.4 years).
VRP 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 12.4 years both funds cover.
VRP vs VYM Performance
Invesco Variable Rate Preferred ETF (VRP) is an ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VRP returned +2.72% while VYM returned +15.34%. Year to date, VRP is up 1.93% versus a gain of 11.35% for VYM.
Over three years, VRP compounded at +8.41% per year against +17.22% for VYM; over five years the annualized figures are +4.03% and +12.30% respectively. Across the full 12-year window we track, VYM has the edge at +8.99% annualized vs +2.27%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.7% compared with 7.4% for VRP. 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 -46.2% for VRP and -35.7% 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 0.68. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VRP charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, VRP currently yields 6.09% against 2.22% for VYM.
Holdings Overlap
At least 15.7% of VYM's money is in holdings VRP also owns.
Stated as a floor: for VRP, our book for it covers 72.4% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VYM and VRP share little of their money.
39 positions in common, counted across the 265 positions we hold weights for in VRP and 557 in VYM, against full books of 343 and 613.
Top Shared Holdings
| Stock | Weight in VRP | Weight in VYM | Difference |
|---|---|---|---|
| JPMJpmorgan Chase | 1.05% | 3.82% | 2.77% |
| BACBank of America Corp.: Financials | 1.06% | 1.66% | 0.60% |
| WFCWells Fargo & Co. | 0.77% | 1.07% | 0.30% |
| VZVerizon Communic | 0.68% | 0.80% | 0.12% |
| GSGoldman Sachs Group, Inc. (The), Series V | 0.26% | 1.13% | 0.87% |
| CVSCvs Corp | 0.83% | 0.54% | 0.29% |
| NEENextera Energy Inc | 0.51% | 0.74% | 0.23% |
| CCitigroup Inc 6.875 11/73 6.88 2173-11-15 | 0.35% | 0.89% | 0.54% |
| SOSouthern Co. | 0.64% | 0.43% | 0.21% |
| STTState Street Corp. | 0.53% | 0.20% | 0.33% |
You are not choosing between two funds in isolation.
Whichever of VRP and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VRP or VYM?
VRP has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option, by $46 a year on a $10,000 investment.
Which performed better, VRP or VYM?
Over the past year VRP returned +2.72% vs +15.34% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), VRP annualized +2.27% vs +8.99% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VRP or VYM?
VYM has been the more volatile fund at 13.7% annualized versus 7.4% for VRP. Worst drawdown: VRP -46.2% vs VYM -35.7%.
Should I hold both VRP and VYM?
VRP and VYM have a monthly-return correlation of 0.68, 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 VRP and VYM?
At least 15.7% of VYM's money is in holdings VRP also owns. Our book for VRP is partial, so the real figure is this or higher. They hold 39 positions in common, counted across the 265 positions we hold weights for in VRP and 557 in VYM.
Which pays a higher dividend, VRP or VYM?
VRP yields 6.09% while VYM yields 2.22%, so VRP currently pays the higher dividend yield.
Is VYM better than VRP?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.