VYM vs WTAI
Vanguard High Dividend Yield ETF vs WisdomTree Artificial Intelligence and Innovation Fund ETF
Quick Verdict
VYM has a lower expense ratio. WTAI delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VYM | WTAI | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.45% | |
| AUM | $79.0B | $587M | |
| Dividend Yield | 2.86% | 1.12% | |
| Holdings | 568 | 75 | |
| YTD Return | +16.10% | +37.81% | |
| 1Y Return | +25.99% | +60.43% | |
| 3Y Return (annualized) | +18.29% | +31.32% | |
| 5Y Return (annualized) | +12.35% | - | |
| Volatility (annualized) | 14.6% | 33.3% | |
| Max Drawdown | -58.8% | -45.9% | |
| Fund Family | Vanguard (US) | WisdomTree Investments | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Dec 7, 2021 |
VYM vs WTAI Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and WisdomTree Artificial Intelligence and Innovation Fund ETF (WTAI) is a ETF from WisdomTree Investments. Over the past year VYM returned +25.99% while WTAI returned +60.43%. Year to date, VYM is up 16.10% versus a gain of 37.81% for WTAI.
Over three years, VYM compounded at +18.29% per year against +31.32% for WTAI. Across the full 5-year window we track, WTAI has the edge at +11.37% annualized vs +7.08%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WTAI has been the more volatile fund, with annualized monthly volatility of 33.3% 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 -45.9% for WTAI. 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while WTAI 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 1.12% for WTAI.
Holdings Overlap
VYM and WTAI share 9 holdings out of 615 unique holdings combined, representing a 6.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VYM or WTAI?
VYM has an expense ratio of 0.04% while WTAI 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 WTAI?
Over the past year VYM returned +25.99% vs +60.43% for WTAI, so WTAI leads on 1-year performance. Over the longest common window we track (5 years), VYM annualized +7.08% vs +11.37% for WTAI. Past performance does not guarantee future results.
Which is riskier, VYM or WTAI?
WTAI has been the more volatile fund at 33.3% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs WTAI -45.9%.
Should I hold both VYM and WTAI?
VYM and WTAI have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and WTAI?
VYM and WTAI share 9 common holdings with a 6.8% weight overlap. Combined, they hold 615 unique securities.
Which pays a higher dividend, VYM or WTAI?
VYM yields 2.86% while WTAI yields 1.12%, so VYM currently pays the higher dividend yield.
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