VYM vs XONE

Quick Verdict

XONE has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: XONEHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricVYMXONEWinner
Expense Ratio0.04%0.03%
AUM$79.0B$821M
Dividend Yield2.86%4.09%
Holdings56855
YTD Return+16.16%+1.41%
1Y Return+26.05%+3.26%
3Y Return (annualized)+18.43%+4.42%
5Y Return (annualized)+12.21%-
Volatility (annualized)14.6%0.8%
Max Drawdown-58.8%-0.4%
Fund FamilyVanguard (US)BondBloxx
CategoryEquityFixed Income
InceptionNov 10, 2006Sep 13, 2022

VYM vs XONE Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and BondBloxx Bloomberg One Year Target Duration US Treasury ETF (XONE) is a ETF from BondBloxx. Over the past year VYM returned +26.05% while XONE returned +3.26%. Year to date, VYM is up 16.16% versus a gain of 1.41% for XONE.

Over three years, VYM compounded at +18.43% per year against +4.42% for XONE. Across the full 4-year window we track, VYM has the edge at +7.09% annualized vs +4.10%. 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 0.8% for XONE. 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 -0.4% for XONE. 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VYM charges 0.04% per year while XONE charges 0.03%. On a $10,000 position that is $4 vs $3 annually, a gap of $1 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 4.09% for XONE.

Holdings Overlap

0.0%overlap

VYM and XONE share 0 holdings out of 608 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 XONE?

VYM has an expense ratio of 0.04% while XONE charges 0.03%. XONE is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, VYM or XONE?

Over the past year VYM returned +26.05% vs +3.26% for XONE, so VYM leads on 1-year performance. Over the longest common window we track (4 years), VYM annualized +7.09% vs +4.10% for XONE. Past performance does not guarantee future results.

Which is riskier, VYM or XONE?

VYM has been the more volatile fund at 14.6% annualized versus 0.8% for XONE. Worst drawdown: VYM -58.8% vs XONE -0.4%.

Should I hold both VYM and XONE?

VYM and XONE have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VYM and XONE?

VYM and XONE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 608 unique securities.

Which pays a higher dividend, VYM or XONE?

VYM yields 2.86% while XONE yields 4.09%, so XONE currently pays the higher dividend yield.

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