VYM vs ZSC

Quick Verdict

VYM has a lower expense ratio. ZSC delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: ZSCMore Diversified: VYM

Side-by-Side Comparison

MetricVYMZSCWinner
Expense Ratio0.04%0.59%
AUM$79.0B$3M
Dividend Yield2.86%1.69%
Holdings56831
YTD Return+16.53%+8.73%
1Y Return+25.03%+28.97%
3Y Return (annualized)+18.54%+2.59%
5Y Return (annualized)+12.25%-
Volatility (annualized)14.6%13.6%
Max Drawdown-58.8%-26.5%
Fund FamilyVanguard (US)USCF Investments
CategoryEquityEquity
InceptionNov 10, 2006Aug 9, 2023

VYM vs ZSC Performance

Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and USCF Sustainable Commodity Strategy Fund (ZSC) is a ETF from USCF Investments. Over the past year VYM returned +25.03% while ZSC returned +28.97%. Year to date, VYM is up 16.53% versus a gain of 8.73% for ZSC.

Over three years, VYM compounded at +18.54% per year against +2.59% for ZSC. Across the full 3-year window we track, VYM has the edge at +7.10% annualized vs +2.08%. 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 13.6% for ZSC. 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 -26.5% for ZSC. 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VYM charges 0.04% per year while ZSC charges 0.59%. On a $10,000 position that is $4 vs $59 annually, a gap of $55 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 1.69% for ZSC.

Frequently Asked Questions

Which is cheaper, VYM or ZSC?

VYM has an expense ratio of 0.04% while ZSC charges 0.59%. VYM is the cheaper option. On a $10,000 investment, that is $55 per year of difference.

Which performed better, VYM or ZSC?

Over the past year VYM returned +25.03% vs +28.97% for ZSC, so ZSC leads on 1-year performance. Over the longest common window we track (3 years), VYM annualized +7.10% vs +2.08% for ZSC. Past performance does not guarantee future results.

Which is riskier, VYM or ZSC?

VYM has been the more volatile fund at 14.6% annualized versus 13.6% for ZSC. Worst drawdown: VYM -58.8% vs ZSC -26.5%.

Should I hold both VYM and ZSC?

VYM and ZSC have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, VYM or ZSC?

VYM yields 2.86% while ZSC yields 1.69%, so VYM currently pays the higher dividend yield.

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