VYM vs XSHQ
Vanguard High Dividend Yield ETF vs Invesco S&P SmallCap Quality ETF
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 | XSHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.29% | |
| AUM | $81.6B | $324M | |
| Dividend Yield | 2.24% | 1.18% | |
| Holdings | 616 | 122 | |
| YTD Return | +15.34% | +14.64% | |
| 1Y Return | +23.24% | +14.48% | |
| 3Y Return (annualized) | +19.22% | +11.35% | |
| 5Y Return (annualized) | +12.21% | +7.07% | |
| Volatility (annualized) | 14.6% | 19.2% | |
| Max Drawdown | -58.8% | -38.3% | |
| Fund Family | Vanguard (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Apr 3, 2017 |
VYM vs XSHQ Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Invesco S&P SmallCap Quality ETF (XSHQ) is a ETF from Invesco (US). Over the past year VYM returned +23.24% while XSHQ returned +14.48%. Year to date, VYM is up 15.34% versus a gain of 14.64% for XSHQ.
Over three years, VYM compounded at +19.22% per year against +11.35% for XSHQ; over five years the annualized figures are +12.21% and +7.07% respectively. Across the full 9-year window we track, XSHQ has the edge at +8.96% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSHQ has been the more volatile fund, with annualized monthly volatility of 19.2% 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 -38.3% for XSHQ. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XSHQ charges 0.29%. On a $10,000 position that is $4 vs $29 annually, a gap of $25 per year that compounds over a long holding period. On income, VYM currently yields 2.24% against 1.18% for XSHQ.
Holdings Overlap
VYM and XSHQ share 27 holdings out of 696 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VYM or XSHQ?
VYM has an expense ratio of 0.04% while XSHQ charges 0.29%. VYM is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, VYM or XSHQ?
Over the past year VYM returned +23.24% vs +14.48% for XSHQ, so VYM leads on 1-year performance. Over the longest common window we track (9 years), VYM annualized +7.04% vs +8.96% for XSHQ. Past performance does not guarantee future results.
Which is riskier, VYM or XSHQ?
XSHQ has been the more volatile fund at 19.2% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XSHQ -38.3%.
Should I hold both VYM and XSHQ?
VYM and XSHQ have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XSHQ?
VYM and XSHQ share 27 common holdings with a 0.4% weight overlap. Combined, they hold 696 unique securities.
Which pays a higher dividend, VYM or XSHQ?
VYM yields 2.24% while XSHQ yields 1.18%, so VYM currently pays the higher dividend yield.
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