VYM vs XOMO
Vanguard High Dividend Yield ETF vs YieldMax XOM Option Income Strategy ETF
Quick Verdict
VYM has a lower expense ratio. XOMO delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VYM | XOMO | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 1.25% | |
| AUM | $79.0B | $40M | |
| Dividend Yield | 2.86% | 39.96% | |
| Holdings | 568 | 9 | |
| YTD Return | +16.78% | +18.64% | |
| 1Y Return | +24.43% | +32.21% | |
| 3Y Return (annualized) | +18.60% | +7.76% | |
| 5Y Return (annualized) | +12.30% | - | |
| Volatility (annualized) | 14.6% | 17.5% | |
| Max Drawdown | -58.8% | -18.9% | |
| Fund Family | Vanguard (US) | YieldMax ETF | |
| Category | Equity | Alternative | |
| Inception | Nov 10, 2006 | Aug 30, 2023 |
VYM vs XOMO Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and YieldMax XOM Option Income Strategy ETF (XOMO) is a ETF from YieldMax ETF. Over the past year VYM returned +24.43% while XOMO returned +32.21%. Year to date, VYM is up 16.78% versus a gain of 18.64% for XOMO.
Over three years, VYM compounded at +18.60% per year against +7.76% for XOMO. Across the full 3-year window we track, XOMO has the edge at +7.76% annualized vs +7.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XOMO has been the more volatile fund, with annualized monthly volatility of 17.5% 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 -18.9% for XOMO. 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while XOMO charges 1.25%. On a $10,000 position that is $4 vs $125 annually, a gap of $121 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 39.96% for XOMO.
Holdings Overlap
VYM and XOMO share 0 holdings out of 560 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 XOMO?
VYM has an expense ratio of 0.04% while XOMO charges 1.25%. VYM is the cheaper option. On a $10,000 investment, that is $121 per year of difference.
Which performed better, VYM or XOMO?
Over the past year VYM returned +24.43% vs +32.21% for XOMO, so XOMO leads on 1-year performance. Over the longest common window we track (3 years), VYM annualized +7.11% vs +7.76% for XOMO. Past performance does not guarantee future results.
Which is riskier, VYM or XOMO?
XOMO has been the more volatile fund at 17.5% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XOMO -18.9%.
Should I hold both VYM and XOMO?
VYM and XOMO have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XOMO?
VYM and XOMO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 560 unique securities.
Which pays a higher dividend, VYM or XOMO?
VYM yields 2.86% while XOMO yields 39.96%, so XOMO currently pays the higher dividend yield.
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