VYM vs WAR
Vanguard High Dividend Yield ETF vs US Global Technology And Aerospace & Defense ETF
Quick Verdict
VYM has a lower expense ratio. WAR delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | VYM | WAR | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.60% | |
| AUM | $81.6B | $40M | |
| Dividend Yield | 2.24% | 10.22% | |
| Holdings | 616 | 30 | |
| YTD Return | +16.42% | +44.84% | |
| 1Y Return | +24.22% | +63.92% | |
| 3Y Return (annualized) | +19.03% | - | |
| 5Y Return (annualized) | +12.21% | - | |
| Volatility (annualized) | 14.6% | 33.3% | |
| Max Drawdown | -58.8% | -25.0% | |
| Fund Family | Vanguard (US) | U.S. Global Investors, Inc. | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Dec 30, 2024 |
VYM vs WAR Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and US Global Technology And Aerospace & Defense ETF (WAR) is a ETF from U.S. Global Investors, Inc.. Over the past year VYM returned +24.22% while WAR returned +63.92%. Year to date, VYM is up 16.42% versus a gain of 44.84% for WAR.
Risk: Volatility and Drawdowns
WAR has been the more volatile fund, with annualized monthly volatility of 33.3% 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 -58.8% for VYM and -25.0% for WAR. 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while WAR charges 0.60%. On a $10,000 position that is $4 vs $60 annually, a gap of $56 per year that compounds over a long holding period. On income, VYM currently yields 2.24% against 10.22% for WAR.
Holdings Overlap
VYM and WAR share 0 holdings out of 632 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VYM or WAR?
VYM has an expense ratio of 0.04% while WAR charges 0.60%. VYM is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, VYM or WAR?
Over the past year VYM returned +24.22% vs +63.92% for WAR, so WAR leads on 1-year performance. Over the longest common window we track (2 years), VYM annualized +7.10% vs +49.93% for WAR. Past performance does not guarantee future results.
Which is riskier, VYM or WAR?
WAR has been the more volatile fund at 33.3% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs WAR -25.0%.
Should I hold both VYM and WAR?
VYM and WAR have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and WAR?
VYM and WAR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 632 unique securities.
Which pays a higher dividend, VYM or WAR?
VYM yields 2.24% while WAR yields 10.22%, so WAR currently pays the higher dividend yield.
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