VYM vs XYZY
Vanguard High Dividend Yield ETF vs YieldMax XYZ Option Income Strategy 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 | XYZY | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 1.44% | |
| AUM | $81.6B | $45M | |
| Dividend Yield | 2.24% | 78.81% | |
| Holdings | 616 | 14 | |
| YTD Return | +15.34% | +12.68% | |
| 1Y Return | +23.24% | -1.65% | |
| 3Y Return (annualized) | +19.22% | - | |
| 5Y Return (annualized) | +12.21% | - | |
| Volatility (annualized) | 14.6% | 41.8% | |
| Max Drawdown | -58.8% | -52.3% | |
| Fund Family | Vanguard (US) | YieldMax ETF | |
| Category | Equity | Alternative | |
| Inception | Nov 10, 2006 | Oct 10, 2023 |
VYM vs XYZY Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and YieldMax XYZ Option Income Strategy ETF (XYZY) is a ETF from YieldMax ETF. Over the past year VYM returned +23.24% while XYZY returned -1.65%. Year to date, VYM is up 15.34% versus a gain of 12.68% for XYZY.
Risk: Volatility and Drawdowns
XYZY has been the more volatile fund, with annualized monthly volatility of 41.8% 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 -52.3% for XYZY. 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while XYZY charges 1.44%. On a $10,000 position that is $4 vs $144 annually, a gap of $140 per year that compounds over a long holding period. On income, VYM currently yields 2.24% against 78.81% for XYZY.
Holdings Overlap
VYM and XYZY share 0 holdings out of 606 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 XYZY?
VYM has an expense ratio of 0.04% while XYZY charges 1.44%. VYM is the cheaper option. On a $10,000 investment, that is $140 per year of difference.
Which performed better, VYM or XYZY?
Over the past year VYM returned +23.24% vs -1.65% for XYZY, so VYM leads on 1-year performance. Over the longest common window we track (3 years), VYM annualized +7.04% vs +12.32% for XYZY. Past performance does not guarantee future results.
Which is riskier, VYM or XYZY?
XYZY has been the more volatile fund at 41.8% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XYZY -52.3%.
Should I hold both VYM and XYZY?
VYM and XYZY have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XYZY?
VYM and XYZY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 606 unique securities.
Which pays a higher dividend, VYM or XYZY?
VYM yields 2.24% while XYZY yields 78.81%, so XYZY currently pays the higher dividend yield.
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