VYM vs WDTE
Vanguard High Dividend Yield ETF vs Defiance S&P 500 Weekly Distribution 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 | WDTE | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 1.03% | |
| AUM | $79.0B | $66M | |
| Dividend Yield | 2.86% | 51.34% | |
| Holdings | 568 | 5 | |
| YTD Return | +16.10% | +12.75% | |
| 1Y Return | +25.99% | +19.41% | |
| 3Y Return (annualized) | +18.29% | +14.81% | |
| 5Y Return (annualized) | +12.35% | - | |
| Volatility (annualized) | 14.6% | 10.5% | |
| Max Drawdown | -58.8% | -15.8% | |
| Fund Family | Vanguard (US) | Defiance ETFs, LLC | |
| Category | Equity | Alternative | |
| Inception | Nov 10, 2006 | Sep 18, 2023 |
VYM vs WDTE Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Defiance S&P 500 Weekly Distribution ETF (WDTE) is a ETF from Defiance ETFs, LLC. Over the past year VYM returned +25.99% while WDTE returned +19.41%. Year to date, VYM is up 16.10% versus a gain of 12.75% for WDTE.
Over three years, VYM compounded at +18.29% per year against +14.81% for WDTE. Across the full 3-year window we track, WDTE has the edge at +14.81% annualized vs +7.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 10.5% for WDTE. 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 -15.8% for WDTE. 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while WDTE charges 1.03%. On a $10,000 position that is $4 vs $103 annually, a gap of $99 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 51.34% for WDTE.
Holdings Overlap
VYM and WDTE share 0 holdings out of 559 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 WDTE?
VYM has an expense ratio of 0.04% while WDTE charges 1.03%. VYM is the cheaper option. On a $10,000 investment, that is $99 per year of difference.
Which performed better, VYM or WDTE?
Over the past year VYM returned +25.99% vs +19.41% for WDTE, so VYM leads on 1-year performance. Over the longest common window we track (3 years), VYM annualized +7.08% vs +14.81% for WDTE. Past performance does not guarantee future results.
Which is riskier, VYM or WDTE?
VYM has been the more volatile fund at 14.6% annualized versus 10.5% for WDTE. Worst drawdown: VYM -58.8% vs WDTE -15.8%.
Should I hold both VYM and WDTE?
VYM and WDTE have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and WDTE?
VYM and WDTE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, VYM or WDTE?
VYM yields 2.86% while WDTE yields 51.34%, so WDTE currently pays the higher dividend yield.
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