VYM vs XSHD
Vanguard High Dividend Yield ETF vs Invesco S&P SmallCap High Dividend Low Volatility ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VYM | XSHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.30% | |
| AUM | $79.0B | $73M | |
| Dividend Yield | 2.86% | 5.04% | |
| Holdings | 568 | 57 | |
| YTD Return | +16.53% | +10.77% | |
| 1Y Return | +25.03% | +9.53% | |
| 3Y Return (annualized) | +18.54% | +1.46% | |
| 5Y Return (annualized) | +12.25% | -3.75% | |
| Volatility (annualized) | 14.6% | 21.6% | |
| Max Drawdown | -58.8% | -49.5% | |
| Fund Family | Vanguard (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Dec 1, 2016 |
VYM vs XSHD Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Invesco S&P SmallCap High Dividend Low Volatility ETF (XSHD) is a ETF from Invesco (US). Over the past year VYM returned +25.03% while XSHD returned +9.53%. Year to date, VYM is up 16.53% versus a gain of 10.77% for XSHD.
Over three years, VYM compounded at +18.54% per year against +1.46% for XSHD; over five years the annualized figures are +12.25% and -3.75% respectively. Across the full 10-year window we track, VYM has the edge at +7.10% annualized vs -0.34%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSHD has been the more volatile fund, with annualized monthly volatility of 21.6% 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 -49.5% for XSHD. 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XSHD charges 0.30%. On a $10,000 position that is $4 vs $30 annually, a gap of $26 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 5.04% for XSHD.
Holdings Overlap
VYM and XSHD share 29 holdings out of 582 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VYM or XSHD?
VYM has an expense ratio of 0.04% while XSHD charges 0.30%. VYM is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, VYM or XSHD?
Over the past year VYM returned +25.03% vs +9.53% for XSHD, so VYM leads on 1-year performance. Over the longest common window we track (10 years), VYM annualized +7.10% vs -0.34% for XSHD. Past performance does not guarantee future results.
Which is riskier, VYM or XSHD?
XSHD has been the more volatile fund at 21.6% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XSHD -49.5%.
Should I hold both VYM and XSHD?
VYM and XSHD have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XSHD?
VYM and XSHD share 29 common holdings with a 0.3% weight overlap. Combined, they hold 582 unique securities.
Which pays a higher dividend, VYM or XSHD?
VYM yields 2.86% while XSHD yields 5.04%, so XSHD currently pays the higher dividend yield.
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