VYM vs WEED

Quick Verdict

VYM has a lower expense ratio. WEED delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: WEEDMore Diversified: VYM

Side-by-Side Comparison

MetricVYMWEEDWinner
Expense Ratio0.04%0.41%
AUM$79.0B$8M
Dividend Yield2.86%0.00%
Holdings5689
YTD Return+15.80%-5.45%
1Y Return+26.12%+30.84%
3Y Return (annualized)+18.25%-4.96%
5Y Return (annualized)+12.51%-
Volatility (annualized)14.6%80.0%
Max Drawdown-58.8%-88.1%
Fund FamilyVanguard (US)Roundhill Investments
CategoryEquityEquity
InceptionNov 10, 2006Apr 20, 2022

VYM vs WEED Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Roundhill Cannabis ETF (WEED) is a ETF from Roundhill Investments. Over the past year VYM returned +26.12% while WEED returned +30.84%. Year to date, VYM is up 15.80% versus a loss of 5.45% for WEED.

Over three years, VYM compounded at +18.25% per year against -4.96% for WEED. Across the full 4-year window we track, VYM has the edge at +7.07% annualized vs -27.19%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

WEED has been the more volatile fund, with annualized monthly volatility of 80.0% 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 -88.1% for WEED. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VYM charges 0.04% per year while WEED charges 0.41%. On a $10,000 position that is $4 vs $41 annually, a gap of $37 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 0.00% for WEED.

Holdings Overlap

0.0%overlap

VYM and WEED share 0 holdings out of 560 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 WEED?

VYM has an expense ratio of 0.04% while WEED charges 0.41%. VYM is the cheaper option. On a $10,000 investment, that is $37 per year of difference.

Which performed better, VYM or WEED?

Over the past year VYM returned +26.12% vs +30.84% for WEED, so WEED leads on 1-year performance. Over the longest common window we track (4 years), VYM annualized +7.07% vs -27.19% for WEED. Past performance does not guarantee future results.

Which is riskier, VYM or WEED?

WEED has been the more volatile fund at 80.0% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs WEED -88.1%.

Should I hold both VYM and WEED?

VYM and WEED have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VYM and WEED?

VYM and WEED share 0 common holdings with a 0.0% weight overlap. Combined, they hold 560 unique securities.

Which pays a higher dividend, VYM or WEED?

VYM yields 2.86% while WEED yields 0.00%, so VYM currently pays the higher dividend yield.

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