VYM vs XHB
Vanguard High Dividend Yield ETF vs State Street SPDR S&P Homebuilders ETF
Which is better, VYM or XHB?
Large Cap Value against Mid Cap Blend.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 39.0%.
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 | XHB |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.35% |
| AUM | $81.6B | $1.3B |
| Dividend Yield | 2.24% | 0.55% |
| Holdings | 613 | 35 |
| YTD Return | +14.33%Best | -3.28% |
| 1Y Return | +20.01%Best | -15.17% |
| 3Y Return (annualized) | +18.43%Best | +7.77% |
| 5Y Return (annualized) | +12.16%Best | +6.50% |
| Volatility (annualized) | 14.5%Best | 28.2% |
| Max Drawdown | -58.8%Best | -79.3% |
| $10,000 over 5 years | $17,750Best | $13,701 |
| Top 10 Weight | 25.9%Best | 39.0% |
| Fund Family | Vanguard (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Blend |
| Inception | Nov 10, 2006 | Jan 31, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 8, 2026 (19.8 years).
VYM vs XHB 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 19.8 years both funds cover.
VYM vs XHB Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and State Street SPDR S&P Homebuilders ETF (XHB) is an ETF from State Street Investment Management. Over the past year VYM returned +20.01% while XHB returned -15.17%. Year to date, VYM is up 14.33% versus a loss of 3.28% for XHB.
Over three years, VYM compounded at +18.43% per year against +7.77% for XHB; over five years the annualized figures are +12.16% and +6.50% respectively. Across the full 20-year window we track, VYM has the edge at +6.97% annualized vs +5.59%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XHB has been the more volatile fund, with annualized monthly volatility of 28.2% compared with 14.5% 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 -79.3% for XHB. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 XHB 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 0.55% for XHB.
Holdings Overlap
3.0% of VYM's money is in holdings XHB also owns. 42.3% of XHB's money is in holdings VYM also owns.
The two portfolios partly overlap.
12 positions in common, counted across the 602 positions we hold weights for in VYM and 34 in XHB, against full books of 613 and 35.
What only one of them owns
Measured across the 602 and 34 positions we hold weights for.
VYM holds 557 positions XHB does not, 94.3% of the fund.
Largest: AVGO 7.29%, JPM 3.38%, JNJ 2.54%, XOM 2.36%, CAT 2.01%
Top Shared Holdings
| Stock | Weight in VYM | Weight in XHB | Difference |
|---|---|---|---|
| HDHome Depot Inc/The | 1.46% | 3.63% | 2.17% |
| ALLEAllegion Plc | 0.05% | 4.25% | 4.20% |
| OCOwens Corning | 0.05% | 4.21% | 4.16% |
| WSMWilliams-sonoma Inc | 0.11% | 4.00% | 3.89% |
| IBPInstalled Building Products Inc | 0.02% | 4.04% | 4.02% |
| JCIJohnson Controls Intl Plc | 0.37% | 3.67% | 3.30% |
| LOWLowe'S Companies Inc | 0.51% | 3.35% | 2.84% |
| KBHKb Home | 0.02% | 3.70% | 3.68% |
| MASMasco Corp. | 0.07% | 3.62% | 3.55% |
| CARRCarrier Global Corporation | 0.24% | 3.21% | 2.97% |
42.3% of XHB is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, VYM or XHB?
VYM has an expense ratio of 0.04% while XHB charges 0.35%. VYM is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, VYM or XHB?
Over the past year VYM returned +20.01% vs -15.17% for XHB, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.97% vs +5.59% for XHB. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XHB?
XHB has been the more volatile fund at 28.2% annualized versus 14.5% for VYM. Worst drawdown: VYM -58.8% vs XHB -79.3%.
Should I hold both VYM and XHB?
VYM and XHB have a monthly-return correlation of 0.74, 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 XHB?
42.3% of XHB's money is in holdings VYM also owns. 42.3% of XHB's is in holdings VYM also owns. They hold 12 positions in common, counted across the 602 positions we hold weights for in VYM and 34 in XHB.
Which pays a higher dividend, VYM or XHB?
VYM yields 2.24% while XHB yields 0.55%, so VYM currently pays the higher dividend yield.
Is XHB better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 39.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.