VTWO vs VYM
Vanguard Russell 2000 ETF vs Vanguard High Dividend Yield ETF
Which is better, VTWO or VYM?
Small Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VTWO led over 1Y, 3Y and the full window, VYM over 5Y.
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 | VTWO | VYM |
|---|---|---|
| Expense Ratio | 0.06% | 0.04%Best |
| AUM | $17.5B | $81.6B |
| Dividend Yield | 1.10% | 2.22% |
| Holdings | 2,015 | 613 |
| YTD Return | +16.37%Best | +10.96% |
| 1Y Return | +18.90%Best | +15.42% |
| 3Y Return (annualized) | +19.14%Best | +17.78% |
| 5Y Return (annualized) | +6.93% | +12.05%Best |
| Volatility (annualized) | 19.1% | 12.9%Best |
| Max Drawdown | -42.4% | -35.7%Best |
| $10,000 over 5 years | $13,980 | $17,663Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Value |
| Inception | Sep 20, 2010 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 22, 2010 to Sep 22, 2026 (16 years).
VTWO 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 16 years both funds cover.
VTWO vs VYM Performance
Vanguard Russell 2000 ETF (VTWO) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VTWO returned +18.90% while VYM returned +15.42%. Year to date, VTWO is up 16.37% versus a gain of 10.96% for VYM.
Over three years, VTWO compounded at +19.14% per year against +17.78% for VYM; over five years the annualized figures are +6.93% and +12.05% respectively. Across the full 16-year window we track, VTWO has the edge at +10.37% annualized vs +10.24%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTWO has been the more volatile fund, with annualized monthly volatility of 19.1% compared with 12.9% 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 -42.4% for VTWO and -35.7% 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTWO charges 0.06% per year while VYM charges 0.04%. On a $10,000 position that is $6 vs $4 annually, a gap of $2 per year that compounds over a long holding period. On income, VTWO currently yields 1.10% against 2.22% for VYM.
Holdings Overlap
At least 2.2% of VYM's money is in holdings VTWO also owns.
Stated as a floor: for VTWO, our book for it covers 89.7% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VYM and VTWO share little of their money.
137 positions in common, counted across the 1,633 positions we hold weights for in VTWO and 557 in VYM, against full books of 2,015 and 613.
Top Shared Holdings
| Stock | Weight in VTWO | Weight in VYM | Difference |
|---|---|---|---|
| UMBFUmb Financial Corp. | 0.34% | 0.04% | 0.30% |
| ONBOld National Bancorp/In Common Stock | 0.29% | 0.04% | 0.25% |
| FCFSFirstcash Inc | 0.26% | 0.03% | 0.23% |
| SMSm Energy Co | 0.25% | 0.03% | 0.22% |
| JXNJackson Financial Inc USD | 0.25% | 0.03% | 0.22% |
| TEXTerex Corp | 0.23% | 0.03% | 0.20% |
| VLYValley National Bancorp | 0.22% | 0.03% | 0.19% |
| PBFPbf Energy Inc | 0.22% | 0.03% | 0.19% |
| GBCIGlacier Bancorp Inc | 0.21% | 0.03% | 0.18% |
| SWXSouthwest Gas Holdings Inc Common Stock Usd 1 | 0.21% | 0.03% | 0.18% |
You are not choosing between two funds in isolation.
Whichever of VTWO and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VTWO or VYM?
VTWO has an expense ratio of 0.06% while VYM charges 0.04%. VYM is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VTWO or VYM?
Over the past year VTWO returned +18.90% vs +15.42% for VYM, so VTWO leads on 1-year performance. Over the longest common window we track (16 years), VTWO annualized +10.37% vs +10.24% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTWO or VYM?
VTWO has been the more volatile fund at 19.1% annualized versus 12.9% for VYM. Worst drawdown: VTWO -42.4% vs VYM -35.7%.
Should I hold both VTWO and VYM?
VTWO and VYM have a monthly-return correlation of 0.83, 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 VTWO and VYM?
At least 2.2% of VYM's money is in holdings VTWO also owns. Our book for VTWO is partial, so the real figure is this or higher. They hold 137 positions in common, counted across the 1,633 positions we hold weights for in VTWO and 557 in VYM.
Which pays a higher dividend, VTWO or VYM?
VTWO yields 1.10% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than VTWO?
VYM has a lower expense ratio. VTWO led over 1Y, 3Y and the full window, VYM over 5Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.