VYM vs XDTE

Quick Verdict

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

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricVYMXDTEWinner
Expense Ratio0.04%0.97%
AUM$79.0B$335M
Dividend Yield2.86%31.53%
Holdings5685
YTD Return+15.80%+4.48%
1Y Return+26.12%+13.68%
3Y Return (annualized)+18.25%-
5Y Return (annualized)+12.51%-
Volatility (annualized)14.6%12.6%
Max Drawdown-58.8%-16.7%
Fund FamilyVanguard (US)Roundhill Investments
CategoryEquityEquity
InceptionNov 10, 2006Mar 7, 2024

VYM vs XDTE Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Roundhill S&P 500 0DTE Covered Call Strategy ETF (XDTE) is a ETF from Roundhill Investments. Over the past year VYM returned +26.12% while XDTE returned +13.68%. Year to date, VYM is up 15.80% versus a gain of 4.48% for XDTE.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 12.6% for XDTE. 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 -16.7% for XDTE. 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 0.74. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VYM charges 0.04% per year while XDTE charges 0.97%. On a $10,000 position that is $4 vs $97 annually, a gap of $93 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 31.53% for XDTE.

Holdings Overlap

0.0%overlap

VYM and XDTE share 0 holdings out of 559 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 XDTE?

VYM has an expense ratio of 0.04% while XDTE charges 0.97%. VYM is the cheaper option. On a $10,000 investment, that is $93 per year of difference.

Which performed better, VYM or XDTE?

Over the past year VYM returned +26.12% vs +13.68% for XDTE, so VYM leads on 1-year performance. Over the longest common window we track (2 years), VYM annualized +7.07% vs +18.24% for XDTE. Past performance does not guarantee future results.

Which is riskier, VYM or XDTE?

VYM has been the more volatile fund at 14.6% annualized versus 12.6% for XDTE. Worst drawdown: VYM -58.8% vs XDTE -16.7%.

Should I hold both VYM and XDTE?

VYM and XDTE have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VYM and XDTE?

VYM and XDTE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.

Which pays a higher dividend, VYM or XDTE?

VYM yields 2.86% while XDTE yields 31.53%, so XDTE currently pays the higher dividend yield.

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