VTWAX vs VYM
Vanguard Total World Stock Index Fund Admiral Class vs Vanguard High Dividend Yield ETF
Which is better, VTWAX or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VTWAX led over 1Y and 3Y, VYM over 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 | VTWAX | VYM |
|---|---|---|
| Expense Ratio | 0.09% | 0.04%Best |
| AUM | $12.1B | $81.6B |
| Dividend Yield | 1.52% | 2.22% |
| Holdings | 10,039 | 613 |
| YTD Price Return | +12.57%Best | +12.54% |
| 1Y Price Return | +16.89%Best | +14.71% |
| 3Y Price Return (annualized) | +18.20%Best | +14.88% |
| 5Y Price Return (annualized) | +8.52% | +8.95%Best |
| Volatility (annualized) | 15.1% | 13.9%Best |
| Max Drawdown | -28.0% | -17.5%Best |
| $10,000 over 5 years | $15,050 | $15,351Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Feb 7, 2019 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VTWAX. Both funds are measured the same way, so the comparison holds. VTWAX yields 1.52% and VYM 2.22% on top.
Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 11, 2026 (5 years).
VTWAX 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 5 years both funds cover. Prices exclude distributions, on both funds alike.
VTWAX vs VYM Performance
Vanguard Total World Stock Index Fund Admiral Class (VTWAX) is a mutual fund from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VTWAX returned +16.89% while VYM returned +14.71%. Year to date, VTWAX is up 12.57% versus a gain of 12.54% for VYM.
Over three years, VTWAX compounded at +18.20% per year against +14.88% for VYM; over five years the annualized figures are +8.52% and +8.95% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTWAX has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 13.9% 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 -28.0% for VTWAX and -17.5% 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTWAX charges 0.09% per year while VYM charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, VTWAX currently yields 1.52% against 2.22% for VYM.
Structure and taxes
VTWAX is a mutual fund and VYM is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
At least 96.8% of VYM's money is in holdings VTWAX also owns.
Stated as a floor: for VTWAX, our book for it covers 89.4% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
Most of VYM is already inside VTWAX. Owning both mostly buys the same companies twice.
The two holdings books were reported 150 days apart, VTWAX as of Jan 31, 2026 and VYM as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
578 positions in common, counted across the 9,796 positions we hold weights for in VTWAX and 603 in VYM, against full books of 10,039 and 613.
Top Shared Holdings
| Stock | Weight in VTWAX | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 1.42% | 7.29% | 5.87% |
| JPMJpmorgan Chase & Co. | 0.74% | 3.38% | 2.64% |
| JNJJohnson & Johnson | 0.51% | 2.54% | 2.03% |
| XOMExxon Mobil Corp. | 0.55% | 2.36% | 1.81% |
| CATCaterpillar, Inc. | 0.28% | 2.01% | 1.73% |
| ABBVAbbvie Inc. | 0.37% | 1.85% | 1.48% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.29% | 1.93% | 1.64% |
| BACBank Of America Corp. | 0.32% | 1.56% | 1.24% |
| HDHome Depot Inc/The | 0.35% | 1.46% | 1.11% |
| UNHUnitedhealth Group Inc. | 0.24% | 1.56% | 1.32% |
96.8% of VYM is already inside VTWAX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VTWAX or VYM?
VTWAX has an expense ratio of 0.09% while VYM charges 0.04%. VYM is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VTWAX or VYM?
Over the past year VTWAX returned +16.89% vs +14.71% for VYM, so VTWAX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTWAX or VYM?
VTWAX has been the more volatile fund at 15.1% annualized versus 13.9% for VYM. Worst drawdown: VTWAX -28.0% vs VYM -17.5%.
Should I hold both VTWAX and VYM?
VTWAX and VYM have a monthly-return correlation of 0.86, 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 VTWAX and VYM?
At least 96.8% of VYM's money is in holdings VTWAX also owns. Our book for VTWAX is partial, so the real figure is this or higher. They hold 578 positions in common, counted across the 9,796 positions we hold weights for in VTWAX and 603 in VYM.
Which pays a higher dividend, VTWAX or VYM?
VTWAX yields 1.52% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is it better to hold VTWAX or VYM in a taxable account?
VYM is an ETF and VTWAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VYM better than VTWAX?
VYM has a lower expense ratio. VTWAX led over 1Y and 3Y, VYM over 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.