VXF vs VYM
Vanguard Extended Market ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VXF offers more diversification with 3,385 holdings.
Side-by-Side Comparison
| Metric | VXF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.04% | |
| AUM | $30.5B | $81.6B | |
| Dividend Yield | 1.03% | 2.24% | |
| Holdings | 3,385 | 613 | |
| YTD Return | +13.82% | +14.87% | |
| 1Y Return | +18.28% | +21.39% | |
| 3Y Return (annualized) | +18.26% | +18.69% | |
| 5Y Return (annualized) | +5.76% | +11.98% | |
| Volatility (annualized) | 18.7% | 14.5% | |
| Max Drawdown | -59.4% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 27, 2001 | Nov 10, 2006 |
VXF vs VYM Performance
Vanguard Extended Market ETF (VXF) is a ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VXF returned +18.28% while VYM returned +21.39%. Year to date, VXF is up 13.82% versus a gain of 14.87% for VYM.
Over three years, VXF compounded at +18.26% per year against +18.69% for VYM; over five years the annualized figures are +5.76% and +11.98% respectively. Across the full 20-year window we track, VXF has the edge at +8.92% annualized vs +7.00%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXF has been the more volatile fund, with annualized monthly volatility of 18.7% compared with 14.5% 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 -59.4% for VXF 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VXF charges 0.05% per year while VYM charges 0.04%. On a $10,000 position that is $5 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VXF currently yields 1.03% against 2.24% for VYM.
Holdings Overlap
VXF and VYM share 321 holdings out of 3577 unique holdings combined, representing a 7.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VXF or VYM?
VXF has an expense ratio of 0.05% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VXF or VYM?
Over the past year VXF returned +18.28% vs +21.39% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VXF annualized +8.92% vs +7.00% for VYM. Past performance does not guarantee future results.
Which is riskier, VXF or VYM?
VXF has been the more volatile fund at 18.7% annualized versus 14.5% for VYM. Worst drawdown: VXF -59.4% vs VYM -58.8%.
Should I hold both VXF and VYM?
VXF and VYM have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXF and VYM?
VXF and VYM share 321 common holdings with a 7.0% weight overlap. Combined, they hold 3577 unique securities.
Which pays a higher dividend, VXF or VYM?
VXF yields 1.03% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.