Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricVYMYETHWinner
Expense Ratio0.04%0.96%
AUM$79.0B$61M
Dividend Yield2.86%81.06%
Holdings5689
YTD Return+15.80%-40.08%
1Y Return+26.12%-47.35%
3Y Return (annualized)+18.25%-
5Y Return (annualized)+12.51%-
Volatility (annualized)14.6%50.4%
Max Drawdown-58.8%-65.1%
Fund FamilyVanguard (US)Roundhill Investments
CategoryEquityAlternative
InceptionNov 10, 2006Sep 4, 2024

VYM vs YETH Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Roundhill Ether Covered Call Strategy ETF (YETH) is a ETF from Roundhill Investments. Over the past year VYM returned +26.12% while YETH returned -47.35%. Year to date, VYM is up 15.80% versus a loss of 40.08% for YETH.

Risk: Volatility and Drawdowns

YETH has been the more volatile fund, with annualized monthly volatility of 50.4% 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 -65.1% for YETH. 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 0.09. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VYM charges 0.04% per year while YETH charges 0.96%. On a $10,000 position that is $4 vs $96 annually, a gap of $92 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 81.06% for YETH.

Frequently Asked Questions

Which is cheaper, VYM or YETH?

VYM has an expense ratio of 0.04% while YETH charges 0.96%. VYM is the cheaper option. On a $10,000 investment, that is $92 per year of difference.

Which performed better, VYM or YETH?

Over the past year VYM returned +26.12% vs -47.35% for YETH, so VYM leads on 1-year performance. Over the longest common window we track (2 years), VYM annualized +7.07% vs -25.82% for YETH. Past performance does not guarantee future results.

Which is riskier, VYM or YETH?

YETH has been the more volatile fund at 50.4% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs YETH -65.1%.

Should I hold both VYM and YETH?

VYM and YETH have a monthly-return correlation of 0.09, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, VYM or YETH?

VYM yields 2.86% while YETH yields 81.06%, so YETH currently pays the higher dividend yield.

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