VYM vs ZALT
Vanguard High Dividend Yield ETF vs Innovator US Equity 10 Buffer ETF - Quarterly
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 | ZALT | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.69% | |
| AUM | $81.6B | $782M | |
| Dividend Yield | 2.24% | 0.00% | |
| Holdings | 616 | 6 | |
| YTD Return | +14.66% | +5.49% | |
| 1Y Return | +22.16% | +9.45% | |
| 3Y Return (annualized) | +18.72% | +10.81% | |
| 5Y Return (annualized) | +12.18% | - | |
| Volatility (annualized) | 14.6% | 3.9% | |
| Max Drawdown | -58.8% | -8.2% | |
| Fund Family | Vanguard (US) | Innovator ETFs Trust | |
| Category | Equity | Alternative | |
| Inception | Nov 10, 2006 | Oct 2, 2023 |
VYM vs ZALT Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Innovator US Equity 10 Buffer ETF - Quarterly (ZALT) is a ETF from Innovator ETFs Trust. Over the past year VYM returned +22.16% while ZALT returned +9.45%. Year to date, VYM is up 14.66% versus a gain of 5.49% for ZALT.
Over three years, VYM compounded at +18.72% per year against +10.81% for ZALT. Across the full 3-year window we track, ZALT has the edge at +10.81% annualized vs +7.01%. 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 3.9% for ZALT. 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 -8.2% for ZALT. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while ZALT charges 0.69%. On a $10,000 position that is $4 vs $69 annually, a gap of $65 per year that compounds over a long holding period. On income, VYM currently yields 2.24% against 0.00% for ZALT.
Frequently Asked Questions
Which is cheaper, VYM or ZALT?
VYM has an expense ratio of 0.04% while ZALT charges 0.69%. VYM is the cheaper option. On a $10,000 investment, that is $65 per year of difference.
Which performed better, VYM or ZALT?
Over the past year VYM returned +22.16% vs +9.45% for ZALT, so VYM leads on 1-year performance. Over the longest common window we track (3 years), VYM annualized +7.01% vs +10.81% for ZALT. Past performance does not guarantee future results.
Which is riskier, VYM or ZALT?
VYM has been the more volatile fund at 14.6% annualized versus 3.9% for ZALT. Worst drawdown: VYM -58.8% vs ZALT -8.2%.
Should I hold both VYM and ZALT?
VYM and ZALT have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, VYM or ZALT?
VYM yields 2.24% while ZALT yields 0.00%, so VYM currently pays the higher dividend yield.
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