VYM vs XFLT
Vanguard High Dividend Yield ETF vs XAI Octagon Floating Rate & Alternative Income Trust
Which is better, VYM or XFLT?
Large Cap Value against Bank Loan.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
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 | XFLT |
|---|---|---|
| Expense Ratio | 0.04%Best | 6.29% |
| AUM | $81.6B | $347M |
| Dividend Yield | 2.22% | 15.04% |
| Holdings | 613 | 509 |
| YTD Return | +13.91%Best | -0.94% |
| 1Y Return | +17.57%Best | -11.58% |
| 3Y Return (annualized) | +18.12%Best | -1.64% |
| 5Y Return (annualized) | +12.17%Best | -0.52% |
| Volatility (annualized) | 14.9%Best | 25.6% |
| Max Drawdown | -35.7%Best | -64.6% |
| $10,000 over 5 years | $17,758Best | $9,743 |
| Fund Family | Vanguard (US) | XA Investments LLC |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | Bank Loan |
| Inception | Nov 10, 2006 | Sep 27, 2017 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 27, 2017 to Sep 11, 2026 (9 years).
VYM vs XFLT 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 9 years both funds cover.
VYM vs XFLT Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and XAI Octagon Floating Rate & Alternative Income Trust (XFLT) is an ETF from XA Investments LLC. Over the past year VYM returned +17.57% while XFLT returned -11.58%. Year to date, VYM is up 13.91% versus a loss of 0.94% for XFLT.
Over three years, VYM compounded at +18.12% per year against -1.64% for XFLT; over five years the annualized figures are +12.17% and -0.52% respectively. Across the full 9-year window we track, VYM has the edge at +10.09% annualized vs -1.22%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XFLT has been the more volatile fund, with annualized monthly volatility of 25.6% compared with 14.9% 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 -64.6% for XFLT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.42. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VYM charges 0.04% per year while XFLT charges 6.29%. On a $10,000 position that is $4 vs $629 annually, a gap of $625 per year that compounds over a long holding period. On income, VYM currently yields 2.22% against 15.04% for XFLT.
Holdings Overlap
At least 0.1% of VYM's money is in holdings XFLT also owns.
Stated as a floor: for XFLT, our book for it covers 46.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
The two holdings books were reported 91 days apart, VYM as of Jun 30, 2026 and XFLT as of Mar 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
1 positions in common, counted across the 603 positions we hold weights for in VYM and 150 in XFLT, against full books of 613 and 509.
Top Shared Holdings
| Stock | Weight in VYM | Weight in XFLT | Difference |
|---|---|---|---|
| PPGRram 2023-25A Sub % | 0.11% | 1.15% | 1.04% |
You are not choosing between two funds in isolation.
Whichever of VYM and XFLT 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 XFLT?
VYM has an expense ratio of 0.04% while XFLT charges 6.29%. VYM is the cheaper option, by $625 a year on a $10,000 investment.
Which performed better, VYM or XFLT?
Over the past year VYM returned +17.57% vs -11.58% for XFLT, so VYM leads on 1-year performance. Over the longest common window we track (9 years), VYM annualized +10.09% vs -1.22% for XFLT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XFLT?
XFLT has been the more volatile fund at 25.6% annualized versus 14.9% for VYM. Worst drawdown: VYM -35.7% vs XFLT -64.6%.
Should I hold both VYM and XFLT?
VYM and XFLT have a monthly-return correlation of 0.42, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VYM or XFLT?
VYM yields 2.22% while XFLT yields 15.04%, so XFLT currently pays the higher dividend yield.
Is XFLT better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.