VYM vs XSHQ
Vanguard High Dividend Yield ETF vs Invesco S&P SmallCap Quality ETF
Which is better, VYM or XSHQ?
Large Cap Value against Small Cap Blend.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. XSHQ is less concentrated, with 22.0% of the fund in its ten largest positions against 25.9%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VYM | XSHQ |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.29% |
| AUM | $81.6B | $297M |
| Dividend Yield | 2.22% | 1.18% |
| Holdings | 613 | 122 |
| YTD Return | +13.91%Best | +10.41% |
| 1Y Return | +17.57%Best | +5.28% |
| 3Y Return (annualized) | +18.12%Best | +10.08% |
| 5Y Return (annualized) | +12.17%Best | +6.54% |
| Volatility (annualized) | 14.6%Best | 19.1% |
| Max Drawdown | -35.7%Best | -38.3% |
| $10,000 over 5 years | $17,758Best | $13,727 |
| Top 10 Weight | 25.9% | 22.0%Best |
| Fund Family | Vanguard (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Small Cap Blend |
| Inception | Nov 10, 2006 | Apr 3, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Apr 6, 2017 to Sep 11, 2026 (9.4 years).
VYM vs XSHQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.4 years both funds cover.
VYM vs XSHQ Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and Invesco S&P SmallCap Quality ETF (XSHQ) is an ETF from Invesco (US). Over the past year VYM returned +17.57% while XSHQ returned +5.28%. Year to date, VYM is up 13.91% versus a gain of 10.41% for XSHQ.
Over three years, VYM compounded at +18.12% per year against +10.08% for XSHQ; over five years the annualized figures are +12.17% and +6.54% respectively. Across the full 9-year window we track, VYM has the edge at +10.04% annualized vs +8.47%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSHQ has been the more volatile fund, with annualized monthly volatility of 19.1% 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 -35.7% for VYM and -38.3% for XSHQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 2.22% against 1.18% for XSHQ.
Holdings Overlap
0.4% of VYM's money is in holdings XSHQ also owns. 25.0% of XSHQ's money is in holdings VYM also owns.
XSHQ and VYM share little of their money.
27 positions in common, counted across the 603 positions we hold weights for in VYM and 120 in XSHQ, against full books of 613 and 122.
What only one of them owns
Our book lists 89 positions for XSHQ that do not appear in our book for VYM (70.5% of the fund), and 544 for VYM that do not appear in XSHQ (97.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VYM | Weight in XSHQ | Difference |
|---|---|---|---|
| YOUClear Secure Inc | 0.02% | 2.17% | 2.15% |
| MCMoelis & Co | 0.02% | 1.82% | 1.80% |
| MKTXMarketaxess Holdings Inc | 0.02% | 1.76% | 1.74% |
| APAMArtisan Partners Asset Management, Inc. | 0.01% | 1.61% | 1.60% |
| LNCLincoln National Corp. | 0.03% | 1.53% | 1.50% |
| IBPInstalled Building Products Inc | 0.02% | 1.36% | 1.34% |
| PIPRPiper Sandler Companies | 0.02% | 1.29% | 1.27% |
| KLIC:SIKulicke & Soffa Industries Inc Adr | 0.03% | 1.10% | 1.07% |
| RDNRadian Group Inc | 0.02% | 0.98% | 0.96% |
| FBP:PRFirst Bancorp/puerto Rico | 0.02% | 0.98% | 0.96% |
25.0% of XSHQ is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $25 a year on a $10,000 investment.
Which performed better, VYM or XSHQ?
Over the past year VYM returned +17.57% vs +5.28% for XSHQ, so VYM leads on 1-year performance. Over the longest common window we track (9 years), VYM annualized +10.04% vs +8.47% for XSHQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XSHQ?
XSHQ has been the more volatile fund at 19.1% annualized versus 14.6% for VYM. Worst drawdown: VYM -35.7% vs XSHQ -38.3%.
Should I hold both VYM and XSHQ?
VYM and XSHQ have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VYM and XSHQ?
25.0% of XSHQ's money is in holdings VYM also owns. 25.0% of XSHQ's is in holdings VYM also owns. They hold 27 positions in common, counted across the 603 positions we hold weights for in VYM and 120 in XSHQ.
Which pays a higher dividend, VYM or XSHQ?
VYM yields 2.22% while XSHQ yields 1.18%, so VYM currently pays the higher dividend yield.
Is XSHQ better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. XSHQ is less concentrated, with 22.0% of the fund in its ten largest positions against 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.