VYM vs ZFEB

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

MetricVYMZFEBWinner
Expense Ratio0.04%0.79%
AUM$79.0B$152M
Dividend Yield2.86%0.00%
Holdings5685
YTD Return+16.16%+3.27%
1Y Return+26.05%+6.57%
3Y Return (annualized)+18.43%-
5Y Return (annualized)+12.21%-
Volatility (annualized)14.6%2.3%
Max Drawdown-58.8%-3.0%
Fund FamilyVanguard (US)Innovator ETFs Trust
CategoryEquityAlternative
InceptionNov 10, 2006Jan 31, 2025

VYM vs ZFEB Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Innovator Equity Defined Protection ETF - 1 Yr February (ZFEB) is a ETF from Innovator ETFs Trust. Over the past year VYM returned +26.05% while ZFEB returned +6.57%. Year to date, VYM is up 16.16% versus a gain of 3.27% for ZFEB.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 2.3% for ZFEB. 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 -3.0% for ZFEB. 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 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VYM charges 0.04% per year while ZFEB charges 0.79%. On a $10,000 position that is $4 vs $79 annually, a gap of $75 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 0.00% for ZFEB.

Frequently Asked Questions

Which is cheaper, VYM or ZFEB?

VYM has an expense ratio of 0.04% while ZFEB charges 0.79%. VYM is the cheaper option. On a $10,000 investment, that is $75 per year of difference.

Which performed better, VYM or ZFEB?

Over the past year VYM returned +26.05% vs +6.57% for ZFEB, so VYM leads on 1-year performance. Over the longest common window we track (2 years), VYM annualized +7.09% vs +6.25% for ZFEB. Past performance does not guarantee future results.

Which is riskier, VYM or ZFEB?

VYM has been the more volatile fund at 14.6% annualized versus 2.3% for ZFEB. Worst drawdown: VYM -58.8% vs ZFEB -3.0%.

Should I hold both VYM and ZFEB?

VYM and ZFEB have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, VYM or ZFEB?

VYM yields 2.86% while ZFEB yields 0.00%, so VYM currently pays the higher dividend yield.

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