VYM vs XAR
Vanguard High Dividend Yield ETF vs State Street SPDR S&P Aerospace & Defense ETF
Which is better, VYM or XAR?
Large Cap Value against Mid Cap Growth.
VYM has a lower expense ratio. VYM led over 1Y, XAR over 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 31.1%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VYM | XAR |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.35% |
| AUM | $81.6B | $6.0B |
| Dividend Yield | 2.24% | 0.31% |
| Holdings | 613 | 48 |
| YTD Return | +14.82%Best | +1.07% |
| 1Y Return | +20.84%Best | +17.88% |
| 3Y Return (annualized) | +18.64% | +28.71%Best |
| 5Y Return (annualized) | +12.28% | +16.56%Best |
| Volatility (annualized) | 13.0%Best | 20.3% |
| Max Drawdown | -35.7%Best | -46.7% |
| $10,000 over 5 years | $17,845 | $21,515Best |
| Top 10 Weight | 25.9%Best | 31.1% |
| Fund Family | Vanguard (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Growth |
| Inception | Nov 10, 2006 | Sep 28, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2011 to Sep 4, 2026 (14.9 years).
VYM vs XAR growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.9 years both funds cover.
VYM vs XAR Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and State Street SPDR S&P Aerospace & Defense ETF (XAR) is an ETF from State Street Investment Management. Over the past year VYM returned +20.84% while XAR returned +17.88%. Year to date, VYM is up 14.82% versus a gain of 1.07% for XAR.
Over three years, VYM compounded at +18.64% per year against +28.71% for XAR; over five years the annualized figures are +12.28% and +16.56% respectively. Across the full 15-year window we track, XAR has the edge at +16.93% annualized vs +10.90%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XAR has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 13.0% 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 -35.7% for VYM and -46.7% for XAR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XAR charges 0.35%. On a $10,000 position that is $4 vs $35 annually, a gap of $31 per year that compounds over a long holding period. On income, VYM currently yields 2.24% against 0.31% for XAR.
Holdings Overlap
1.4% of VYM's money is in holdings XAR also owns. 13.8% of XAR's money is in holdings VYM also owns.
XAR and VYM share little of their money.
5 positions in common, counted across the 603 positions we hold weights for in VYM and 48 in XAR, against full books of 613 and 48.
What only one of them owns
Measured across the 603 and 48 positions we hold weights for.
VYM holds 565 positions XAR does not, 96.1% of the fund.
Largest: AVGO 7.29%, JPM 3.38%, JNJ 2.54%, XOM 2.36%, CAT 2.01%
You are not choosing between two funds in isolation.
Whichever of VYM and XAR you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VYM or XAR?
VYM has an expense ratio of 0.04% while XAR charges 0.35%. VYM is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, VYM or XAR?
Over the past year VYM returned +20.84% vs +17.88% for XAR, so VYM leads on 1-year performance. Over the longest common window we track (15 years), VYM annualized +10.90% vs +16.93% for XAR. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XAR?
XAR has been the more volatile fund at 20.3% annualized versus 13.0% for VYM. Worst drawdown: VYM -35.7% vs XAR -46.7%.
Should I hold both VYM and XAR?
VYM and XAR have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VYM and XAR?
13.8% of XAR's money is in holdings VYM also owns. 13.8% of XAR's is in holdings VYM also owns. They hold 5 positions in common, counted across the 603 positions we hold weights for in VYM and 48 in XAR.
Which pays a higher dividend, VYM or XAR?
VYM yields 2.24% while XAR yields 0.31%, so VYM currently pays the higher dividend yield.
Is XAR better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, XAR over 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 31.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.