VYM vs WOOD

VYM vs WOOD
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Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricVYMWOODWinner
Expense Ratio0.04%0.39%
AUM$81.6B$268M
Dividend Yield2.24%2.34%
Holdings61648
YTD Return+15.34%+0.42%
1Y Return+23.24%+0.06%
3Y Return (annualized)+19.22%+1.83%
5Y Return (annualized)+12.21%-1.79%
Volatility (annualized)14.6%22.5%
Max Drawdown-58.8%-63.8%
Fund FamilyVanguard (US)iShares by BlackRock (US)
CategoryEquityEquity
InceptionNov 10, 2006Jun 24, 2008

VYM vs WOOD Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and iShares Global Timber & Forestry ETF (WOOD) is a ETF from iShares by BlackRock (US). Over the past year VYM returned +23.24% while WOOD returned +0.06%. Year to date, VYM is up 15.34% versus a gain of 0.42% for WOOD.

Over three years, VYM compounded at +19.22% per year against +1.83% for WOOD; over five years the annualized figures are +12.21% and -1.79% respectively. Across the full 18-year window we track, VYM has the edge at +7.04% annualized vs +2.79%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

WOOD has been the more volatile fund, with annualized monthly volatility of 22.5% 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 -63.8% for WOOD. 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VYM charges 0.04% per year while WOOD charges 0.39%. On a $10,000 position that is $4 vs $39 annually, a gap of $35 per year that compounds over a long holding period. On income, VYM currently yields 2.24% against 2.34% for WOOD.

Holdings Overlap

0.1%overlap

VYM and WOOD share 2 holdings out of 627 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VYMWeight in WOODDifference
IP0.08%4.76%4.68%
SLVM0.01%4.08%4.07%

Frequently Asked Questions

Which is cheaper, VYM or WOOD?

VYM has an expense ratio of 0.04% while WOOD charges 0.39%. VYM is the cheaper option. On a $10,000 investment, that is $35 per year of difference.

Which performed better, VYM or WOOD?

Over the past year VYM returned +23.24% vs +0.06% for WOOD, so VYM leads on 1-year performance. Over the longest common window we track (18 years), VYM annualized +7.04% vs +2.79% for WOOD. Past performance does not guarantee future results.

Which is riskier, VYM or WOOD?

WOOD has been the more volatile fund at 22.5% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs WOOD -63.8%.

Should I hold both VYM and WOOD?

VYM and WOOD have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VYM and WOOD?

VYM and WOOD share 2 common holdings with a 0.1% weight overlap. Combined, they hold 627 unique securities.

Which pays a higher dividend, VYM or WOOD?

VYM yields 2.24% while WOOD yields 2.34%, so WOOD currently pays the higher dividend yield.

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