VYM vs XRT
Vanguard High Dividend Yield ETF vs State Street SPDR S&P Retail ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 613 holdings.
Side-by-Side Comparison
| Metric | VYM | XRT | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.35% | |
| AUM | $81.6B | $365M | |
| Dividend Yield | 2.24% | 0.75% | |
| Holdings | 613 | 77 | |
| YTD Return | +14.57% | +0.72% | |
| 1Y Return | +21.08% | +2.91% | |
| 3Y Return (annualized) | +18.16% | +11.13% | |
| 5Y Return (annualized) | +12.00% | -0.75% | |
| Volatility (annualized) | 14.6% | 24.6% | |
| Max Drawdown | -58.8% | -66.2% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Jun 19, 2006 |
VYM vs XRT Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and State Street SPDR S&P Retail ETF (XRT) is a ETF from State Street Investment Management. Over the past year VYM returned +21.08% while XRT returned +2.91%. Year to date, VYM is up 14.57% versus a gain of 0.72% for XRT.
Over three years, VYM compounded at +18.16% per year against +11.13% for XRT; over five years the annualized figures are +12.00% and -0.75% respectively. Across the full 20-year window we track, XRT has the edge at +8.29% annualized vs +6.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XRT has been the more volatile fund, with annualized monthly volatility of 24.6% 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 -66.2% for XRT. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XRT 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 0.75% for XRT.
Holdings Overlap
VYM and XRT share 18 holdings out of 661 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VYM or XRT?
VYM has an expense ratio of 0.04% while XRT 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 XRT?
Over the past year VYM returned +21.08% vs +2.91% for XRT, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.99% vs +8.29% for XRT. Past performance does not guarantee future results.
Which is riskier, VYM or XRT?
XRT has been the more volatile fund at 24.6% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XRT -66.2%.
Should I hold both VYM and XRT?
VYM and XRT have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XRT?
VYM and XRT share 18 common holdings with a 1.1% weight overlap. Combined, they hold 661 unique securities.
Which pays a higher dividend, VYM or XRT?
VYM yields 2.24% while XRT yields 0.75%, so VYM currently pays the higher dividend yield.
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