VYM vs XSMO
Vanguard High Dividend Yield ETF vs Invesco S&P SmallCap Momentum ETF
Which is better, VYM or XSMO?
Large Cap Value against Small Cap Growth.
VYM has a lower expense ratio. VYM led over 1Y and 5Y, XSMO over 3Y and the full window. XSMO is less concentrated, with 23.1% of the fund in its ten largest positions against 26.1%.
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 | XSMO |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.36% |
| AUM | $81.6B | $2.9B |
| Dividend Yield | 2.22% | 0.57% |
| Holdings | 613 | 113 |
| YTD Return | +12.29% | +13.19%Best |
| 1Y Return | +16.61%Best | +14.07% |
| 3Y Return (annualized) | +17.42% | +19.00%Best |
| 5Y Return (annualized) | +12.12%Best | +10.07% |
| Volatility (annualized) | 14.6%Best | 19.6% |
| Max Drawdown | -58.8% | -58.1%Best |
| $10,000 over 5 years | $17,718Best | $16,156 |
| Top 10 Weight | 26.1% | 23.1%Best |
| Fund Family | Vanguard (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Small Cap Growth |
| Inception | Nov 10, 2006 | Mar 3, 2005 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 17, 2026 (19.8 years).
VYM vs XSMO 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 19.8 years both funds cover.
VYM vs XSMO Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and Invesco S&P SmallCap Momentum ETF (XSMO) is an ETF from Invesco (US). Over the past year VYM returned +16.61% while XSMO returned +14.07%. Year to date, VYM is up 12.29% versus a gain of 13.19% for XSMO.
Over three years, VYM compounded at +17.42% per year against +19.00% for XSMO; over five years the annualized figures are +12.12% and +10.07% respectively. Across the full 20-year window we track, XSMO has the edge at +8.20% annualized vs +6.87%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSMO has been the more volatile fund, with annualized monthly volatility of 19.6% 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 -58.1% for XSMO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XSMO charges 0.36%. On a $10,000 position that is $4 vs $36 annually, a gap of $32 per year that compounds over a long holding period. On income, VYM currently yields 2.22% against 0.57% for XSMO.
Holdings Overlap
0.3% of VYM's money is in holdings XSMO also owns. 15.9% of XSMO's money is in holdings VYM also owns.
XSMO and VYM share little of their money.
21 positions in common, counted across the 557 positions we hold weights for in VYM and 108 in XSMO, against full books of 613 and 113.
What only one of them owns
Our book lists 85 positions for XSMO that do not appear in our book for VYM (81.4% of the fund), and 510 for VYM that do not appear in XSMO (96.8%).
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 XSMO | Difference |
|---|---|---|---|
| IBPInstalled Building Products | 0.02% | 1.29% | 1.27% |
| SXTSensient Technologies Corp | 0.02% | 1.26% | 1.24% |
| MCYMercury General Corp | 0.01% | 1.24% | 1.23% |
| DANDana Inc | 0.01% | 1.20% | 1.19% |
| BTUPeabody Energy Corp | 0.01% | 1.12% | 1.11% |
| HASIHa Sustainable Infrastructure Capital Inc | 0.02% | 1.07% | 1.05% |
| YOUClear Secure Inc -Class A | 0.02% | 0.88% | 0.86% |
| CWENClearway Energy, Inc., Class C | 0.02% | 0.87% | 0.85% |
| MDUMdu Resources | 0.02% | 0.83% | 0.81% |
| SIG:LNSignet Jewelers Limited Common Shares | 0.01% | 0.84% | 0.83% |
You are not choosing between two funds in isolation.
Whichever of VYM and XSMO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VYM or XSMO?
VYM has an expense ratio of 0.04% while XSMO charges 0.36%. VYM is the cheaper option, by $32 a year on a $10,000 investment.
Which performed better, VYM or XSMO?
Over the past year VYM returned +16.61% vs +14.07% for XSMO, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.87% vs +8.20% for XSMO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XSMO?
XSMO has been the more volatile fund at 19.6% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XSMO -58.1%.
Should I hold both VYM and XSMO?
VYM and XSMO have a monthly-return correlation of 0.80, 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 XSMO?
15.9% of XSMO's money is in holdings VYM also owns. 15.9% of XSMO's is in holdings VYM also owns. They hold 21 positions in common, counted across the 557 positions we hold weights for in VYM and 108 in XSMO.
Which pays a higher dividend, VYM or XSMO?
VYM yields 2.22% while XSMO yields 0.57%, so VYM currently pays the higher dividend yield.
Is XSMO better than VYM?
VYM has a lower expense ratio. VYM led over 1Y and 5Y, XSMO over 3Y and the full window. XSMO is less concentrated, with 23.1% of the fund in its ten largest positions against 26.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.