VYM vs WDEF
Vanguard High Dividend Yield ETF vs WisdomTree Europe Defense Fund 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 | VYM | WDEF | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.45% | |
| AUM | $79.0B | $95M | |
| Dividend Yield | 2.86% | 0.08% | |
| Holdings | 568 | 38 | |
| YTD Return | +16.16% | +8.31% | |
| 1Y Return | +26.05% | +15.66% | |
| 3Y Return (annualized) | +18.43% | - | |
| 5Y Return (annualized) | +12.21% | - | |
| Volatility (annualized) | 14.6% | 32.7% | |
| Max Drawdown | -58.8% | -23.9% | |
| Fund Family | Vanguard (US) | WisdomTree Investments | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Jul 17, 2025 |
VYM vs WDEF Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and WisdomTree Europe Defense Fund ETF (WDEF) is a ETF from WisdomTree Investments. Over the past year VYM returned +26.05% while WDEF returned +15.66%. Year to date, VYM is up 16.16% versus a gain of 8.31% for WDEF.
Risk: Volatility and Drawdowns
WDEF has been the more volatile fund, with annualized monthly volatility of 32.7% 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 -23.9% for WDEF. 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while WDEF charges 0.45%. On a $10,000 position that is $4 vs $45 annually, a gap of $41 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 0.08% for WDEF.
Holdings Overlap
VYM and WDEF share 0 holdings out of 599 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 WDEF?
VYM has an expense ratio of 0.04% while WDEF charges 0.45%. VYM is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, VYM or WDEF?
Over the past year VYM returned +26.05% vs +15.66% for WDEF, so VYM leads on 1-year performance. Over the longest common window we track (1 years), VYM annualized +7.09% vs +7.05% for WDEF. Past performance does not guarantee future results.
Which is riskier, VYM or WDEF?
WDEF has been the more volatile fund at 32.7% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs WDEF -23.9%.
Should I hold both VYM and WDEF?
VYM and WDEF have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and WDEF?
VYM and WDEF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 599 unique securities.
Which pays a higher dividend, VYM or WDEF?
VYM yields 2.86% while WDEF yields 0.08%, so VYM currently pays the higher dividend yield.
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