Quick Verdict

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

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricVYMXRTWinner
Expense Ratio0.04%0.35%
AUM$79.0B$524M
Dividend Yield2.86%0.77%
Holdings56877
YTD Return+15.80%+6.24%
1Y Return+26.12%+12.72%
3Y Return (annualized)+18.25%+12.19%
5Y Return (annualized)+12.51%+0.54%
Volatility (annualized)14.6%24.6%
Max Drawdown-58.8%-66.2%
Fund FamilyVanguard (US)State Street Investment Management
CategoryEquityEquity
InceptionNov 10, 2006Jun 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 +26.12% while XRT returned +12.72%. Year to date, VYM is up 15.80% versus a gain of 6.24% for XRT.

Over three years, VYM compounded at +18.25% per year against +12.19% for XRT; over five years the annualized figures are +12.51% and +0.54% respectively. Across the full 20-year window we track, XRT has the edge at +8.61% annualized vs +7.07%. 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 2.86% against 0.77% for XRT.

Holdings Overlap

0.1%overlap

VYM and XRT share 2 holdings out of 565 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VYMWeight in XRTDifference
BBY0.05%1.40%1.35%
ACI0.03%1.26%1.23%

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 +26.12% vs +12.72% for XRT, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +7.07% vs +8.61% 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 2 common holdings with a 0.1% weight overlap. Combined, they hold 565 unique securities.

Which pays a higher dividend, VYM or XRT?

VYM yields 2.86% while XRT yields 0.77%, so VYM currently pays the higher dividend yield.

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