VYM vs XHYE
Vanguard High Dividend Yield ETF vs BondBloxx USD High Yield Bond Energy Sector ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | VYM | XHYE | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.35% | |
| AUM | $81.6B | $6M | |
| Dividend Yield | 2.24% | 6.41% | |
| Holdings | 616 | 211 | |
| YTD Return | +15.34% | +3.65% | |
| 1Y Return | +23.24% | +10.84% | |
| 3Y Return (annualized) | +19.22% | +8.71% | |
| 5Y Return (annualized) | +12.21% | - | |
| Volatility (annualized) | 14.6% | 7.2% | |
| Max Drawdown | -58.8% | -8.9% | |
| Fund Family | Vanguard (US) | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Nov 10, 2006 | Feb 15, 2022 |
VYM vs XHYE Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and BondBloxx USD High Yield Bond Energy Sector ETF (XHYE) is a ETF from BondBloxx. Over the past year VYM returned +23.24% while XHYE returned +10.84%. Year to date, VYM is up 15.34% versus a gain of 3.65% for XHYE.
Over three years, VYM compounded at +19.22% per year against +8.71% for XHYE. Across the full 4-year window we track, VYM has the edge at +7.04% annualized vs +6.40%. 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 7.2% for XHYE. 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 -8.9% for XHYE. 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XHYE 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 6.41% for XHYE.
Holdings Overlap
VYM and XHYE share 0 holdings out of 782 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 XHYE?
VYM has an expense ratio of 0.04% while XHYE 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 XHYE?
Over the past year VYM returned +23.24% vs +10.84% for XHYE, so VYM leads on 1-year performance. Over the longest common window we track (4 years), VYM annualized +7.04% vs +6.40% for XHYE. Past performance does not guarantee future results.
Which is riskier, VYM or XHYE?
VYM has been the more volatile fund at 14.6% annualized versus 7.2% for XHYE. Worst drawdown: VYM -58.8% vs XHYE -8.9%.
Should I hold both VYM and XHYE?
VYM and XHYE have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XHYE?
VYM and XHYE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 782 unique securities.
Which pays a higher dividend, VYM or XHYE?
VYM yields 2.24% while XHYE yields 6.41%, so XHYE currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.