VVR vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricVVRVYMWinner
Expense Ratio5.26%0.04%
AUM$1,117.8$79.0B
Dividend Yield13.04%2.86%
Holdings525568
YTD Return-0.98%+16.78%
1Y Return-6.76%+24.43%
3Y Return (annualized)+2.97%+18.60%
5Y Return (annualized)+4.49%+12.30%
Volatility (annualized)14.9%14.6%
Max Drawdown-81.8%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionJun 24, 1998Nov 10, 2006

VVR vs VYM Performance

Invesco Senior Income Trust (VVR) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VVR returned -6.76% while VYM returned +24.43%. Year to date, VVR is down 0.98% versus a gain of 16.78% for VYM.

Over three years, VVR compounded at +2.97% per year against +18.60% for VYM; over five years the annualized figures are +4.49% and +12.30% respectively. Across the full 20-year window we track, VYM has the edge at +7.11% annualized vs -2.10%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VVR has been the more volatile fund, with annualized monthly volatility of 14.9% 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 -81.8% for VVR 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VVR charges 5.26% per year while VYM charges 0.04%. On a $10,000 position that is $526 vs $4 annually, a gap of $522 per year that compounds over a long holding period. On income, VVR currently yields 13.04% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

VVR and VYM share 1 holdings out of 695 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VVRWeight in VYMDifference
PTEN0.03%0.01%0.02%

Frequently Asked Questions

Which is cheaper, VVR or VYM?

VVR has an expense ratio of 5.26% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $522 per year of difference.

Which performed better, VVR or VYM?

Over the past year VVR returned -6.76% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VVR annualized -2.10% vs +7.11% for VYM. Past performance does not guarantee future results.

Which is riskier, VVR or VYM?

VVR has been the more volatile fund at 14.9% annualized versus 14.6% for VYM. Worst drawdown: VVR -81.8% vs VYM -58.8%.

Should I hold both VVR and VYM?

VVR and VYM have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VVR and VYM?

VVR and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 695 unique securities.

Which pays a higher dividend, VVR or VYM?

VVR yields 13.04% while VYM yields 2.86%, so VVR currently pays the higher dividend yield.

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