VRP vs VYM
Invesco Variable Rate Preferred 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 | VRP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $3.0B | $79.0B | |
| Dividend Yield | 6.23% | 2.86% | |
| Holdings | 343 | 568 | |
| YTD Return | +2.15% | +16.10% | |
| 1Y Return | +4.92% | +25.99% | |
| 3Y Return (annualized) | +8.62% | +18.29% | |
| 5Y Return (annualized) | +4.15% | +12.35% | |
| Volatility (annualized) | 7.4% | 14.6% | |
| Max Drawdown | -46.2% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | May 1, 2014 | Nov 10, 2006 |
VRP vs VYM Performance
Invesco Variable Rate Preferred ETF (VRP) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VRP returned +4.92% while VYM returned +25.99%. Year to date, VRP is up 2.15% versus a gain of 16.10% for VYM.
Over three years, VRP compounded at +8.62% per year against +18.29% for VYM; over five years the annualized figures are +4.15% and +12.35% respectively. Across the full 12-year window we track, VYM has the edge at +7.08% annualized vs +2.31%. 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 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 -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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
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 6.23% against 2.86% for VYM.
Holdings Overlap
VRP and VYM share 32 holdings out of 804 unique holdings combined, representing a 6.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $46 per year of difference.
Which performed better, VRP or VYM?
Over the past year VRP returned +4.92% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), VRP annualized +2.31% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, VRP or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.4% for VRP. Worst drawdown: VRP -46.2% vs VYM -58.8%.
Should I hold both VRP and VYM?
VRP and VYM have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VRP and VYM?
VRP and VYM share 32 common holdings with a 6.7% weight overlap. Combined, they hold 804 unique securities.
Which pays a higher dividend, VRP or VYM?
VRP yields 6.23% while VYM yields 2.86%, so VRP currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.