VYM vs XLII
Vanguard High Dividend Yield ETF vs State Street Industrial Select Sector SPDR Premium Income 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 | XLII | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.35% | |
| AUM | $81.6B | $11M | |
| Dividend Yield | 2.24% | 12.08% | |
| Holdings | 616 | 5 | |
| YTD Return | +15.34% | +12.03% | |
| 1Y Return | +23.24% | +20.50% | |
| 3Y Return (annualized) | +19.22% | - | |
| 5Y Return (annualized) | +12.21% | - | |
| Volatility (annualized) | 14.6% | 11.5% | |
| Max Drawdown | -58.8% | -10.1% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Jul 29, 2025 |
VYM vs XLII Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street Industrial Select Sector SPDR Premium Income ETF (XLII) is a ETF from State Street Investment Management. Over the past year VYM returned +23.24% while XLII returned +20.50%. Year to date, VYM is up 15.34% versus a gain of 12.03% for XLII.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 11.5% for XLII. 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 -10.1% for XLII. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while XLII 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 12.08% for XLII.
Holdings Overlap
VYM and XLII share 0 holdings out of 605 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 XLII?
VYM has an expense ratio of 0.04% while XLII 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 XLII?
Over the past year VYM returned +23.24% vs +20.50% for XLII, so VYM leads on 1-year performance. Over the longest common window we track (1 years), VYM annualized +7.04% vs +19.24% for XLII. Past performance does not guarantee future results.
Which is riskier, VYM or XLII?
VYM has been the more volatile fund at 14.6% annualized versus 11.5% for XLII. Worst drawdown: VYM -58.8% vs XLII -10.1%.
Should I hold both VYM and XLII?
VYM and XLII have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XLII?
VYM and XLII share 0 common holdings with a 0.0% weight overlap. Combined, they hold 605 unique securities.
Which pays a higher dividend, VYM or XLII?
VYM yields 2.24% while XLII yields 12.08%, so XLII currently pays the higher dividend yield.
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