VYM vs YQQQ
Vanguard High Dividend Yield ETF vs YieldMax Short N100 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 | YQQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 1.11% | |
| AUM | $81.6B | $15M | |
| Dividend Yield | 2.24% | 28.84% | |
| Holdings | 616 | 27 | |
| YTD Return | +15.34% | -6.16% | |
| 1Y Return | +23.24% | -7.94% | |
| 3Y Return (annualized) | +19.22% | - | |
| 5Y Return (annualized) | +12.21% | - | |
| Volatility (annualized) | 14.6% | 15.6% | |
| Max Drawdown | -58.8% | -29.1% | |
| Fund Family | Vanguard (US) | YieldMax ETF | |
| Category | Equity | Alternative | |
| Inception | Nov 10, 2006 | Aug 14, 2024 |
VYM vs YQQQ Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and YieldMax Short N100 Option Income Strategy ETF (YQQQ) is a ETF from YieldMax ETF. Over the past year VYM returned +23.24% while YQQQ returned -7.94%. Year to date, VYM is up 15.34% versus a loss of 6.16% for YQQQ.
Risk: Volatility and Drawdowns
YQQQ has been the more volatile fund, with annualized monthly volatility of 15.6% 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 -29.1% for YQQQ. 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 -0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while YQQQ charges 1.11%. On a $10,000 position that is $4 vs $111 annually, a gap of $107 per year that compounds over a long holding period. On income, VYM currently yields 2.24% against 28.84% for YQQQ.
Holdings Overlap
VYM and YQQQ 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 YQQQ?
VYM has an expense ratio of 0.04% while YQQQ charges 1.11%. VYM is the cheaper option. On a $10,000 investment, that is $107 per year of difference.
Which performed better, VYM or YQQQ?
Over the past year VYM returned +23.24% vs -7.94% for YQQQ, so VYM leads on 1-year performance. Over the longest common window we track (2 years), VYM annualized +7.04% vs -9.63% for YQQQ. Past performance does not guarantee future results.
Which is riskier, VYM or YQQQ?
YQQQ has been the more volatile fund at 15.6% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs YQQQ -29.1%.
Should I hold both VYM and YQQQ?
VYM and YQQQ have a monthly-return correlation of -0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and YQQQ?
VYM and YQQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 606 unique securities.
Which pays a higher dividend, VYM or YQQQ?
VYM yields 2.24% while YQQQ yields 28.84%, so YQQQ currently pays the higher dividend yield.
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