VYM vs XSEP
Vanguard High Dividend Yield ETF vs FT Vest US Equity Enhance & Moderate Buffer ETF - September
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | VYM | XSEP | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.85% | |
| AUM | $81.6B | $136M | |
| Dividend Yield | 2.24% | 0.00% | |
| Holdings | 616 | 6 | |
| YTD Return | +15.75% | +6.14% | |
| 1Y Return | +23.85% | +8.96% | |
| 3Y Return (annualized) | +19.14% | +9.58% | |
| 5Y Return (annualized) | +12.45% | - | |
| Volatility (annualized) | 14.6% | 5.1% | |
| Max Drawdown | -58.8% | -9.2% | |
| Fund Family | Vanguard (US) | First Trust Portfolios (US) | |
| Category | Equity | Alternative | |
| Inception | Nov 10, 2006 | Sep 21, 2022 |
VYM vs XSEP Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and FT Vest US Equity Enhance & Moderate Buffer ETF - September (XSEP) is a ETF from First Trust Portfolios (US). Over the past year VYM returned +23.85% while XSEP returned +8.96%. Year to date, VYM is up 15.75% versus a gain of 6.14% for XSEP.
Over three years, VYM compounded at +19.14% per year against +9.58% for XSEP. Across the full 4-year window we track, XSEP has the edge at +10.87% annualized vs +7.06%. 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 5.1% for XSEP. 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 -9.2% for XSEP. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XSEP charges 0.85%. On a $10,000 position that is $4 vs $85 annually, a gap of $81 per year that compounds over a long holding period. On income, VYM currently yields 2.24% against 0.00% for XSEP.
Holdings Overlap
VYM and XSEP share 0 holdings out of 604 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 XSEP?
VYM has an expense ratio of 0.04% while XSEP charges 0.85%. VYM is the cheaper option. On a $10,000 investment, that is $81 per year of difference.
Which performed better, VYM or XSEP?
Over the past year VYM returned +23.85% vs +8.96% for XSEP, so VYM leads on 1-year performance. Over the longest common window we track (4 years), VYM annualized +7.06% vs +10.87% for XSEP. Past performance does not guarantee future results.
Which is riskier, VYM or XSEP?
VYM has been the more volatile fund at 14.6% annualized versus 5.1% for XSEP. Worst drawdown: VYM -58.8% vs XSEP -9.2%.
Should I hold both VYM and XSEP?
VYM and XSEP have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XSEP?
VYM and XSEP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 604 unique securities.
Which pays a higher dividend, VYM or XSEP?
VYM yields 2.24% while XSEP yields 0.00%, so VYM currently pays the higher dividend yield.
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