VYM vs XHYD
Vanguard High Dividend Yield ETF vs BondBloxx USD High Yield Bond Consumer Non-Cyclicals Sector ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VYM | XHYD | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.35% | |
| AUM | $79.0B | $14M | |
| Dividend Yield | 2.86% | 5.76% | |
| Holdings | 568 | 175 | |
| YTD Return | +16.10% | +0.24% | |
| 1Y Return | +25.99% | +5.87% | |
| 3Y Return (annualized) | +18.29% | +7.53% | |
| 5Y Return (annualized) | +12.35% | - | |
| Volatility (annualized) | 14.6% | 7.4% | |
| Max Drawdown | -58.8% | -11.0% | |
| Fund Family | Vanguard (US) | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Nov 10, 2006 | Feb 15, 2022 |
VYM vs XHYD Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and BondBloxx USD High Yield Bond Consumer Non-Cyclicals Sector ETF (XHYD) is a ETF from BondBloxx. Over the past year VYM returned +25.99% while XHYD returned +5.87%. Year to date, VYM is up 16.10% versus a gain of 0.24% for XHYD.
Over three years, VYM compounded at +18.29% per year against +7.53% for XHYD. Across the full 4-year window we track, VYM has the edge at +7.08% annualized vs +4.75%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 7.4% for XHYD. 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 -11.0% for XHYD. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XHYD 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 2.86% against 5.76% for XHYD.
Holdings Overlap
VYM and XHYD share 0 holdings out of 710 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 XHYD?
VYM has an expense ratio of 0.04% while XHYD charges 0.35%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, VYM or XHYD?
Over the past year VYM returned +25.99% vs +5.87% for XHYD, so VYM leads on 1-year performance. Over the longest common window we track (4 years), VYM annualized +7.08% vs +4.75% for XHYD. Past performance does not guarantee future results.
Which is riskier, VYM or XHYD?
VYM has been the more volatile fund at 14.6% annualized versus 7.4% for XHYD. Worst drawdown: VYM -58.8% vs XHYD -11.0%.
Should I hold both VYM and XHYD?
VYM and XHYD have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XHYD?
VYM and XHYD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 710 unique securities.
Which pays a higher dividend, VYM or XHYD?
VYM yields 2.86% while XHYD yields 5.76%, so XHYD currently pays the higher dividend yield.
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