VYM vs XTWO
VYM vs XTWO
Vanguard High Dividend Yield ETF vs BondBloxx Bloomberg Two Year Target Duration US Treasury 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 | XTWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.05% | |
| AUM | $79.0B | $206M | |
| Dividend Yield | 2.86% | 4.07% | |
| Holdings | 568 | 97 | |
| YTD Return | +15.80% | +0.60% | |
| 1Y Return | +26.12% | +2.46% | |
| 3Y Return (annualized) | +18.25% | +4.11% | |
| 5Y Return (annualized) | +12.51% | - | |
| Volatility (annualized) | 14.6% | 1.9% | |
| Max Drawdown | -58.8% | -1.7% | |
| Fund Family | Vanguard (US) | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Nov 10, 2006 | Sep 13, 2022 |
VYM vs XTWO Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) is a ETF from BondBloxx. Over the past year VYM returned +26.12% while XTWO returned +2.46%. Year to date, VYM is up 15.80% versus a gain of 0.60% for XTWO.
Over three years, VYM compounded at +18.25% per year against +4.11% for XTWO. Across the full 4-year window we track, VYM has the edge at +7.07% annualized vs +3.60%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 1.9% for XTWO. 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 -1.7% for XTWO. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while XTWO charges 0.05%. On a $10,000 position that is $4 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 4.07% for XTWO.
Holdings Overlap
VYM and XTWO share 0 holdings out of 635 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VYM or XTWO?
VYM has an expense ratio of 0.04% while XTWO charges 0.05%. VYM is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VYM or XTWO?
Over the past year VYM returned +26.12% vs +2.46% for XTWO, so VYM leads on 1-year performance. Over the longest common window we track (4 years), VYM annualized +7.07% vs +3.60% for XTWO. Past performance does not guarantee future results.
Which is riskier, VYM or XTWO?
VYM has been the more volatile fund at 14.6% annualized versus 1.9% for XTWO. Worst drawdown: VYM -58.8% vs XTWO -1.7%.
Should I hold both VYM and XTWO?
VYM and XTWO have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XTWO?
VYM and XTWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 635 unique securities.
Which pays a higher dividend, VYM or XTWO?
VYM yields 2.86% while XTWO yields 4.07%, so XTWO currently pays the higher dividend yield.
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