VYM vs ZHDG
Vanguard High Dividend Yield ETF vs ZEGA Buy and Hedge ETF
Which is better, VYM or ZHDG?
Large Cap Value against Large Cap Blend.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VYM | ZHDG |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.97% |
| AUM | $81.6B | $35M |
| Dividend Yield | 2.22% | 2.42% |
| Holdings | 613 | 11 |
| YTD Return | +13.15%Best | +5.11% |
| 1Y Return | +17.82%Best | +8.92% |
| 3Y Return (annualized) | +17.99%Best | +12.83% |
| 5Y Return (annualized) | +12.16%Best | +5.36% |
| Volatility (annualized) | 13.6% | 12.4%Best |
| Max Drawdown | -15.8%Best | -23.3% |
| $10,000 over 5 years | $17,750Best | $12,983 |
| Fund Family | Vanguard (US) | Zega ETFs |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Nov 10, 2006 | Jul 6, 2021 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 7, 2021 to Sep 10, 2026 (5.2 years).
VYM vs ZHDG growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.2 years both funds cover.
VYM vs ZHDG Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and ZEGA Buy and Hedge ETF (ZHDG) is an ETF from Zega ETFs. Over the past year VYM returned +17.82% while ZHDG returned +8.92%. Year to date, VYM is up 13.15% versus a gain of 5.11% for ZHDG.
Over three years, VYM compounded at +17.99% per year against +12.83% for ZHDG; over five years the annualized figures are +12.16% and +5.36% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 12.4% for ZHDG. 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 -15.8% for VYM and -23.3% for ZHDG. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while ZHDG charges 0.97%. On a $10,000 position that is $4 vs $97 annually, a gap of $93 per year that compounds over a long holding period. On income, VYM currently yields 2.22% against 2.42% for ZHDG.
Holdings Overlap
We hold position weights for 603 holdings in VYM and 2 in ZHDG, totalling 99.5% and 6.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 52 days apart, VYM as of Jun 30, 2026 and ZHDG as of Aug 21, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 603 positions we hold weights for in VYM and 2 in ZHDG, against full books of 613 and 11.
You are not choosing between two funds in isolation.
Whichever of VYM and ZHDG you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VYM or ZHDG?
VYM has an expense ratio of 0.04% while ZHDG charges 0.97%. VYM is the cheaper option, by $93 a year on a $10,000 investment.
Which performed better, VYM or ZHDG?
Over the past year VYM returned +17.82% vs +8.92% for ZHDG, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or ZHDG?
VYM has been the more volatile fund at 13.6% annualized versus 12.4% for ZHDG. Worst drawdown: VYM -15.8% vs ZHDG -23.3%.
Should I hold both VYM and ZHDG?
VYM and ZHDG have a monthly-return correlation of 0.79, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VYM or ZHDG?
VYM yields 2.22% while ZHDG yields 2.42%, so ZHDG currently pays the higher dividend yield.
Is ZHDG better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.