VYM vs ZROZ
Vanguard High Dividend Yield ETF vs PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund
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 | ZROZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.15% | |
| AUM | $81.6B | $1.4B | |
| Dividend Yield | 2.24% | 5.52% | |
| Holdings | 616 | 23 | |
| YTD Return | +15.34% | -6.97% | |
| 1Y Return | +23.24% | -4.97% | |
| 3Y Return (annualized) | +19.22% | -5.56% | |
| 5Y Return (annualized) | +12.21% | -14.69% | |
| Volatility (annualized) | 14.6% | 21.7% | |
| Max Drawdown | -58.8% | -63.7% | |
| Fund Family | Vanguard (US) | PIMCO (US) | |
| Category | Equity | Fixed Income | |
| Inception | Nov 10, 2006 | Oct 30, 2009 |
VYM vs ZROZ Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund (ZROZ) is a ETF from PIMCO (US). Over the past year VYM returned +23.24% while ZROZ returned -4.97%. Year to date, VYM is up 15.34% versus a loss of 6.97% for ZROZ.
Over three years, VYM compounded at +19.22% per year against -5.56% for ZROZ; over five years the annualized figures are +12.21% and -14.69% respectively. Across the full 17-year window we track, VYM has the edge at +7.04% annualized vs -0.31%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ZROZ has been the more volatile fund, with annualized monthly volatility of 21.7% 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 -63.7% for ZROZ. 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 -0.13. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while ZROZ charges 0.15%. On a $10,000 position that is $4 vs $15 annually, a gap of $11 per year that compounds over a long holding period. On income, VYM currently yields 2.24% against 5.52% for ZROZ.
Holdings Overlap
VYM and ZROZ share 0 holdings out of 621 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 ZROZ?
VYM has an expense ratio of 0.04% while ZROZ charges 0.15%. VYM is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, VYM or ZROZ?
Over the past year VYM returned +23.24% vs -4.97% for ZROZ, so VYM leads on 1-year performance. Over the longest common window we track (17 years), VYM annualized +7.04% vs -0.31% for ZROZ. Past performance does not guarantee future results.
Which is riskier, VYM or ZROZ?
ZROZ has been the more volatile fund at 21.7% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs ZROZ -63.7%.
Should I hold both VYM and ZROZ?
VYM and ZROZ have a monthly-return correlation of -0.13, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and ZROZ?
VYM and ZROZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 621 unique securities.
Which pays a higher dividend, VYM or ZROZ?
VYM yields 2.24% while ZROZ yields 5.52%, so ZROZ currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.