VSLU vs VYM
Applied Finance Valuation Large Cap 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 616 holdings.
Side-by-Side Comparison
| Metric | VSLU | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.04% | |
| AUM | $569M | $81.6B | |
| Dividend Yield | 0.43% | 2.24% | |
| Holdings | 591 | 616 | |
| YTD Return | +11.47% | +15.42% | |
| 1Y Return | +19.10% | +22.36% | |
| 3Y Return (annualized) | +21.98% | +19.06% | |
| 5Y Return (annualized) | +13.24% | +12.20% | |
| Volatility (annualized) | 14.8% | 14.6% | |
| Max Drawdown | -23.9% | -58.8% | |
| Fund Family | Applied Finance Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 29, 2021 | Nov 10, 2006 |
VSLU vs VYM Performance
Applied Finance Valuation Large Cap ETF (VSLU) is a ETF from Applied Finance Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VSLU returned +19.10% while VYM returned +22.36%. Year to date, VSLU is up 11.47% versus a gain of 15.42% for VYM.
Over three years, VSLU compounded at +21.98% per year against +19.06% for VYM; over five years the annualized figures are +13.24% and +12.20% respectively. Across the full 5-year window we track, VSLU has the edge at +14.09% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VSLU has been the more volatile fund, with annualized monthly volatility of 14.8% 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 -23.9% for VSLU 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VSLU charges 0.49% per year while VYM charges 0.04%. On a $10,000 position that is $49 vs $4 annually, a gap of $45 per year that compounds over a long holding period. On income, VSLU currently yields 0.43% against 2.24% for VYM.
Holdings Overlap
VSLU and VYM share 252 holdings out of 937 unique holdings combined, representing a 30.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VSLU or VYM?
VSLU has an expense ratio of 0.49% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, VSLU or VYM?
Over the past year VSLU returned +19.10% vs +22.36% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), VSLU annualized +14.09% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, VSLU or VYM?
VSLU has been the more volatile fund at 14.8% annualized versus 14.6% for VYM. Worst drawdown: VSLU -23.9% vs VYM -58.8%.
Should I hold both VSLU and VYM?
VSLU and VYM have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VSLU and VYM?
VSLU and VYM share 252 common holdings with a 30.6% weight overlap. Combined, they hold 937 unique securities.
Which pays a higher dividend, VSLU or VYM?
VSLU yields 0.43% while VYM yields 2.24%, so VYM 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.