VYM vs WFH
Vanguard High Dividend Yield ETF vs Direxion Work From Home 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 | WFH | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.45% | |
| AUM | $79.0B | $13M | |
| Dividend Yield | 2.86% | 1.05% | |
| Holdings | 568 | 41 | |
| YTD Return | +16.53% | +15.01% | |
| 1Y Return | +25.03% | +24.89% | |
| 3Y Return (annualized) | +18.54% | +20.91% | |
| 5Y Return (annualized) | +12.25% | +5.89% | |
| Volatility (annualized) | 14.6% | 21.9% | |
| Max Drawdown | -58.8% | -51.2% | |
| Fund Family | Vanguard (US) | Direxion Funds | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Jun 25, 2020 |
VYM vs WFH Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Direxion Work From Home ETF (WFH) is a ETF from Direxion Funds. Over the past year VYM returned +25.03% while WFH returned +24.89%. Year to date, VYM is up 16.53% versus a gain of 15.01% for WFH.
Over three years, VYM compounded at +18.54% per year against +20.91% for WFH; over five years the annualized figures are +12.25% and +5.89% respectively. Across the full 5-year window we track, WFH has the edge at +8.01% annualized vs +7.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WFH has been the more volatile fund, with annualized monthly volatility of 21.9% 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 -51.2% for WFH. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while WFH 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 1.05% for WFH.
Frequently Asked Questions
Which is cheaper, VYM or WFH?
VYM has an expense ratio of 0.04% while WFH 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 WFH?
Over the past year VYM returned +25.03% vs +24.89% for WFH, so VYM leads on 1-year performance. Over the longest common window we track (5 years), VYM annualized +7.10% vs +8.01% for WFH. Past performance does not guarantee future results.
Which is riskier, VYM or WFH?
WFH has been the more volatile fund at 21.9% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs WFH -51.2%.
Should I hold both VYM and WFH?
VYM and WFH have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, VYM or WFH?
VYM yields 2.86% while WFH yields 1.05%, so VYM currently pays the higher dividend yield.
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