VSMV vs VYM
VictoryShares US Multi-Factor Minimum Volatility 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 | VSMV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $157M | $79.0B | |
| Dividend Yield | 1.39% | 2.86% | |
| Holdings | 63 | 568 | |
| YTD Return | +9.92% | +16.53% | |
| 1Y Return | +21.51% | +25.03% | |
| 3Y Return (annualized) | +15.80% | +18.54% | |
| 5Y Return (annualized) | +10.58% | +12.25% | |
| Volatility (annualized) | 13.1% | 14.6% | |
| Max Drawdown | -31.4% | -58.8% | |
| Fund Family | Victory Capital Management Inc. | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 21, 2017 | Nov 10, 2006 |
VSMV vs VYM Performance
VictoryShares US Multi-Factor Minimum Volatility ETF (VSMV) is a ETF from Victory Capital Management Inc. and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VSMV returned +21.51% while VYM returned +25.03%. Year to date, VSMV is up 9.92% versus a gain of 16.53% for VYM.
Over three years, VSMV compounded at +15.80% per year against +18.54% for VYM; over five years the annualized figures are +10.58% and +12.25% respectively. Across the full 9-year window we track, VSMV has the edge at +11.23% annualized vs +7.10%. 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 13.1% for VSMV. 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 -31.4% for VSMV 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VSMV charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, VSMV currently yields 1.39% against 2.86% for VYM.
Holdings Overlap
VSMV and VYM share 32 holdings out of 587 unique holdings combined, representing a 17.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VSMV or VYM?
VSMV has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, VSMV or VYM?
Over the past year VSMV returned +21.51% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), VSMV annualized +11.23% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, VSMV or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.1% for VSMV. Worst drawdown: VSMV -31.4% vs VYM -58.8%.
Should I hold both VSMV and VYM?
VSMV and VYM have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VSMV and VYM?
VSMV and VYM share 32 common holdings with a 17.8% weight overlap. Combined, they hold 587 unique securities.
Which pays a higher dividend, VSMV or VYM?
VSMV yields 1.39% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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