VYM vs WDI
Vanguard High Dividend Yield ETF vs Western Asset Diversified Income Fund
Which is better, VYM or WDI?
Large Cap Value against Diversified Sectoral Bond.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VYM | WDI |
|---|---|---|
| Expense Ratio | 0.04%Best | 1.82% |
| AUM | $81.6B | $722M |
| Dividend Yield | 2.22% | 12.77% |
| Holdings | 613 | 410 |
| YTD Return | +13.91%Best | -2.29% |
| 1Y Return | +17.57%Best | -7.16% |
| 3Y Return (annualized) | +18.12%Best | +9.48% |
| 5Y Return (annualized) | +12.17%Best | +1.91% |
| Volatility (annualized) | 13.5%Best | 13.9% |
| Max Drawdown | -15.8%Best | -32.5% |
| $10,000 over 5 years | $17,758Best | $10,992 |
| Fund Family | Vanguard (US) | Franklin Templeton Investments (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | Diversified Sectoral Bond |
| Inception | Nov 10, 2006 | Jun 24, 2021 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 25, 2021 to Sep 11, 2026 (5.2 years).
VYM vs WDI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.2 years both funds cover.
VYM vs WDI Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and Western Asset Diversified Income Fund (WDI) is an ETF from Franklin Templeton Investments (US). Over the past year VYM returned +17.57% while WDI returned -7.16%. Year to date, VYM is up 13.91% versus a loss of 2.29% for WDI.
Over three years, VYM compounded at +18.12% per year against +9.48% for WDI; over five years the annualized figures are +12.17% and +1.91% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WDI has been the more volatile fund, with annualized monthly volatility of 13.9% compared with 13.5% 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 -15.8% for VYM and -32.5% for WDI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.66. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VYM charges 0.04% per year while WDI charges 1.82%. On a $10,000 position that is $4 vs $182 annually, a gap of $178 per year that compounds over a long holding period. On income, VYM currently yields 2.22% against 12.77% for WDI.
Holdings Overlap
We hold position weights for 603 holdings in VYM and 192 in WDI, totalling 99.5% and 79.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 181 days apart, VYM as of Jun 30, 2026 and WDI as of Dec 31, 2025, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 603 positions we hold weights for in VYM and 192 in WDI, against full books of 613 and 410.
You are not choosing between two funds in isolation.
Whichever of VYM and WDI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VYM or WDI?
VYM has an expense ratio of 0.04% while WDI charges 1.82%. VYM is the cheaper option, by $178 a year on a $10,000 investment.
Which performed better, VYM or WDI?
Over the past year VYM returned +17.57% vs -7.16% for WDI, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or WDI?
WDI has been the more volatile fund at 13.9% annualized versus 13.5% for VYM. Worst drawdown: VYM -15.8% vs WDI -32.5%.
Should I hold both VYM and WDI?
VYM and WDI have a monthly-return correlation of 0.66, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VYM or WDI?
VYM yields 2.22% while WDI yields 12.77%, so WDI currently pays the higher dividend yield.
Is WDI better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.