VYM vs YMAX

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

MetricVYMYMAXWinner
Expense Ratio0.04%1.33%
AUM$79.0B$390M
Dividend Yield2.86%76.20%
Holdings56830
YTD Return+16.16%+2.67%
1Y Return+26.05%-0.07%
3Y Return (annualized)+18.43%-
5Y Return (annualized)+12.21%-
Volatility (annualized)14.6%20.2%
Max Drawdown-58.8%-26.1%
Fund FamilyVanguard (US)YieldMax ETF
CategoryEquityAlternative
InceptionNov 10, 2006Jan 16, 2024

VYM vs YMAX Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and YieldMax Universe Fund of Option Income ETF (YMAX) is a ETF from YieldMax ETF. Over the past year VYM returned +26.05% while YMAX returned -0.07%. Year to date, VYM is up 16.16% versus a gain of 2.67% for YMAX.

Risk: Volatility and Drawdowns

YMAX has been the more volatile fund, with annualized monthly volatility of 20.2% 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 -26.1% for YMAX. 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 YMAX charges 1.33%. On a $10,000 position that is $4 vs $133 annually, a gap of $129 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 76.20% for YMAX.

Holdings Overlap

0.0%overlap

VYM and YMAX share 0 holdings out of 585 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 YMAX?

VYM has an expense ratio of 0.04% while YMAX charges 1.33%. VYM is the cheaper option. On a $10,000 investment, that is $129 per year of difference.

Which performed better, VYM or YMAX?

Over the past year VYM returned +26.05% vs -0.07% for YMAX, so VYM leads on 1-year performance. Over the longest common window we track (3 years), VYM annualized +7.09% vs +13.56% for YMAX. Past performance does not guarantee future results.

Which is riskier, VYM or YMAX?

YMAX has been the more volatile fund at 20.2% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs YMAX -26.1%.

Should I hold both VYM and YMAX?

VYM and YMAX 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 YMAX?

VYM and YMAX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 585 unique securities.

Which pays a higher dividend, VYM or YMAX?

VYM yields 2.86% while YMAX yields 76.20%, so YMAX currently pays the higher dividend yield.

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