VUSE vs VYM
Vident US Equity Strategy 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 | VUSE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.04% | |
| AUM | $667M | $79.0B | |
| Dividend Yield | 0.45% | 2.86% | |
| Holdings | 128 | 568 | |
| YTD Return | +11.64% | +15.80% | |
| 1Y Return | +16.73% | +26.12% | |
| 3Y Return (annualized) | +15.92% | +18.25% | |
| 5Y Return (annualized) | +12.15% | +12.51% | |
| Volatility (annualized) | 17.3% | 14.6% | |
| Max Drawdown | -45.5% | -58.8% | |
| Fund Family | Vident Financial | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 2014 | Nov 10, 2006 |
VUSE vs VYM Performance
Vident US Equity Strategy ETF (VUSE) is a ETF from Vident Financial and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VUSE returned +16.73% while VYM returned +26.12%. Year to date, VUSE is up 11.64% versus a gain of 15.80% for VYM.
Over three years, VUSE compounded at +15.92% per year against +18.25% for VYM; over five years the annualized figures are +12.15% and +12.51% respectively. Across the full 13-year window we track, VUSE has the edge at +9.43% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUSE has been the more volatile fund, with annualized monthly volatility of 17.3% 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 -45.5% for VUSE 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VUSE charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, VUSE currently yields 0.45% against 2.86% for VYM.
Holdings Overlap
VUSE and VYM share 24 holdings out of 661 unique holdings combined, representing a 16.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VUSE or VYM?
VUSE has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, VUSE or VYM?
Over the past year VUSE returned +16.73% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), VUSE annualized +9.43% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, VUSE or VYM?
VUSE has been the more volatile fund at 17.3% annualized versus 14.6% for VYM. Worst drawdown: VUSE -45.5% vs VYM -58.8%.
Should I hold both VUSE and VYM?
VUSE and VYM have a monthly-return correlation of 0.90, 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 VUSE and VYM?
VUSE and VYM share 24 common holdings with a 16.1% weight overlap. Combined, they hold 661 unique securities.
Which pays a higher dividend, VUSE or VYM?
VUSE yields 0.45% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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