VTV vs VYM
Vanguard Morningstar Value ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VTV has a lower expense ratio. VTV delivered stronger 1-year returns. VYM offers more diversification with 613 holdings.
Side-by-Side Comparison
| Metric | VTV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.04% | |
| AUM | $187.8B | $81.6B | |
| Dividend Yield | 1.85% | 2.24% | |
| Holdings | 311 | 613 | |
| YTD Return | +17.84% | +14.57% | |
| 1Y Return | +25.71% | +21.08% | |
| 3Y Return (annualized) | +18.72% | +18.16% | |
| 5Y Return (annualized) | +12.32% | +12.00% | |
| Volatility (annualized) | 14.5% | 14.6% | |
| Max Drawdown | -61.3% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Nov 10, 2006 |
VTV vs VYM Performance
Vanguard Morningstar Value ETF (VTV) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VTV returned +25.71% while VYM returned +21.08%. Year to date, VTV is up 17.84% versus a gain of 14.57% for VYM.
Over three years, VTV compounded at +18.72% per year against +18.16% for VYM; over five years the annualized figures are +12.32% and +12.00% respectively. Across the full 20-year window we track, VTV has the edge at +7.57% annualized vs +6.99%. 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 VTV. 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 -61.3% for VTV 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VTV charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VTV currently yields 1.85% against 2.24% for VYM.
Holdings Overlap
VTV and VYM share 189 holdings out of 722 unique holdings combined, representing a 65.4% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, VTV or VYM?
VTV has an expense ratio of 0.03% while VYM charges 0.04%. VTV is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VTV or VYM?
Over the past year VTV returned +25.71% vs +21.08% for VYM, so VTV leads on 1-year performance. Over the longest common window we track (20 years), VTV annualized +7.57% vs +6.99% for VYM. Past performance does not guarantee future results.
Which is riskier, VTV or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.5% for VTV. Worst drawdown: VTV -61.3% vs VYM -58.8%.
Should I hold both VTV and VYM?
VTV and VYM have a monthly-return correlation of 0.98, 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 VTV and VYM?
VTV and VYM share 189 common holdings with a 65.4% weight overlap. Combined, they hold 722 unique securities.
Which pays a higher dividend, VTV or VYM?
VTV yields 1.85% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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