VYM vs XME
Vanguard High Dividend Yield ETF vs State Street SPDR S&P Metals & Mining ETF
Quick Verdict
VYM has a lower expense ratio. XME delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | VYM | XME | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.35% | |
| AUM | $81.6B | $4.5B | |
| Dividend Yield | 2.24% | 0.37% | |
| Holdings | 616 | 41 | |
| YTD Return | +15.75% | +5.81% | |
| 1Y Return | +23.85% | +44.16% | |
| 3Y Return (annualized) | +19.14% | +31.50% | |
| 5Y Return (annualized) | +12.45% | +22.36% | |
| Volatility (annualized) | 14.6% | 34.5% | |
| Max Drawdown | -58.8% | -87.3% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Jun 19, 2006 |
VYM vs XME Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street SPDR S&P Metals & Mining ETF (XME) is a ETF from State Street Investment Management. Over the past year VYM returned +23.85% while XME returned +44.16%. Year to date, VYM is up 15.75% versus a gain of 5.81% for XME.
Over three years, VYM compounded at +19.14% per year against +31.50% for XME; over five years the annualized figures are +12.45% and +22.36% respectively. Across the full 20-year window we track, VYM has the edge at +7.06% annualized vs +4.94%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XME has been the more volatile fund, with annualized monthly volatility of 34.5% compared with 14.6% 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 -87.3% for XME. 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while XME 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 0.37% for XME.
Holdings Overlap
VYM and XME share 6 holdings out of 637 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VYM or XME?
VYM has an expense ratio of 0.04% while XME 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 XME?
Over the past year VYM returned +23.85% vs +44.16% for XME, so XME leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +7.06% vs +4.94% for XME. Past performance does not guarantee future results.
Which is riskier, VYM or XME?
XME has been the more volatile fund at 34.5% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XME -87.3%.
Should I hold both VYM and XME?
VYM and XME have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XME?
VYM and XME share 6 common holdings with a 0.7% weight overlap. Combined, they hold 637 unique securities.
Which pays a higher dividend, VYM or XME?
VYM yields 2.24% while XME yields 0.37%, so VYM currently pays the higher dividend yield.
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