VYM vs XSLV
Vanguard High Dividend Yield ETF vs Invesco S&P SmallCap Low Volatility 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 | XSLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.25% | |
| AUM | $81.6B | $250M | |
| Dividend Yield | 2.24% | 2.06% | |
| Holdings | 616 | 119 | |
| YTD Return | +15.60% | +15.36% | |
| 1Y Return | +23.48% | +16.87% | |
| 3Y Return (annualized) | +19.07% | +11.34% | |
| 5Y Return (annualized) | +12.50% | +4.48% | |
| Volatility (annualized) | 14.6% | 16.6% | |
| Max Drawdown | -58.8% | -45.3% | |
| Fund Family | Vanguard (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Feb 12, 2013 |
VYM vs XSLV Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Invesco S&P SmallCap Low Volatility ETF (XSLV) is a ETF from Invesco (US). Over the past year VYM returned +23.48% while XSLV returned +16.87%. Year to date, VYM is up 15.60% versus a gain of 15.36% for XSLV.
Over three years, VYM compounded at +19.07% per year against +11.34% for XSLV; over five years the annualized figures are +12.50% and +4.48% respectively. Across the full 14-year window we track, VYM has the edge at +7.05% annualized vs +6.51%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSLV has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -45.3% for XSLV. 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XSLV charges 0.25%. On a $10,000 position that is $4 vs $25 annually, a gap of $21 per year that compounds over a long holding period. On income, VYM currently yields 2.24% against 2.06% for XSLV.
Holdings Overlap
VYM and XSLV share 52 holdings out of 666 unique holdings combined, representing a 0.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VYM or XSLV?
VYM has an expense ratio of 0.04% while XSLV charges 0.25%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, VYM or XSLV?
Over the past year VYM returned +23.48% vs +16.87% for XSLV, so VYM leads on 1-year performance. Over the longest common window we track (14 years), VYM annualized +7.05% vs +6.51% for XSLV. Past performance does not guarantee future results.
Which is riskier, VYM or XSLV?
XSLV has been the more volatile fund at 16.6% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XSLV -45.3%.
Should I hold both VYM and XSLV?
VYM and XSLV have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XSLV?
VYM and XSLV share 52 common holdings with a 0.6% weight overlap. Combined, they hold 666 unique securities.
Which pays a higher dividend, VYM or XSLV?
VYM yields 2.24% while XSLV yields 2.06%, so VYM currently pays the higher dividend yield.
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