VYM vs ZHDG
Vanguard High Dividend Yield ETF vs ZEGA Buy and Hedge ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VYM | ZHDG | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.97% | |
| AUM | $79.0B | $35M | |
| Dividend Yield | 2.86% | 2.47% | |
| Holdings | 568 | 10 | |
| YTD Return | +16.78% | +8.43% | |
| 1Y Return | +24.43% | +13.37% | |
| 3Y Return (annualized) | +18.60% | +13.67% | |
| 5Y Return (annualized) | +12.30% | +6.20% | |
| Volatility (annualized) | 14.6% | 12.6% | |
| Max Drawdown | -58.8% | -23.3% | |
| Fund Family | Vanguard (US) | Zega ETFs | |
| Category | Equity | Equity | |
| Inception | Nov 10, 2006 | Jul 6, 2021 |
VYM vs ZHDG Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and ZEGA Buy and Hedge ETF (ZHDG) is a ETF from Zega ETFs. Over the past year VYM returned +24.43% while ZHDG returned +13.37%. Year to date, VYM is up 16.78% versus a gain of 8.43% for ZHDG.
Over three years, VYM compounded at +18.60% per year against +13.67% for ZHDG; over five years the annualized figures are +12.30% and +6.20% respectively. Across the full 5-year window we track, VYM has the edge at +7.11% annualized vs +6.26%. 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 12.6% 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 -58.8% for VYM and -23.3% for ZHDG. 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 0.79. 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 2.86% against 2.47% for ZHDG.
Holdings Overlap
VYM and ZHDG share 0 holdings out of 562 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 ZHDG?
VYM has an expense ratio of 0.04% while ZHDG charges 0.97%. VYM is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, VYM or ZHDG?
Over the past year VYM returned +24.43% vs +13.37% for ZHDG, so VYM leads on 1-year performance. Over the longest common window we track (5 years), VYM annualized +7.11% vs +6.26% for ZHDG. Past performance does not guarantee future results.
Which is riskier, VYM or ZHDG?
VYM has been the more volatile fund at 14.6% annualized versus 12.6% for ZHDG. Worst drawdown: VYM -58.8% vs ZHDG -23.3%.
Should I hold both VYM and ZHDG?
VYM and ZHDG have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and ZHDG?
VYM and ZHDG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 562 unique securities.
Which pays a higher dividend, VYM or ZHDG?
VYM yields 2.86% while ZHDG yields 2.47%, so VYM currently pays the higher dividend yield.
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