VYM vs ZSEP
Vanguard High Dividend Yield ETF vs Innovator Equity Defined Protection ETF - 1 Yr September
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 | ZSEP | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.79% | |
| AUM | $81.6B | $123M | |
| Dividend Yield | 2.24% | 0.00% | |
| Holdings | 616 | 5 | |
| YTD Return | +15.34% | +3.71% | |
| 1Y Return | +23.24% | +6.02% | |
| 3Y Return (annualized) | +19.22% | - | |
| 5Y Return (annualized) | +12.21% | - | |
| Volatility (annualized) | 14.6% | 2.7% | |
| Max Drawdown | -58.8% | -4.0% | |
| Fund Family | Vanguard (US) | Innovator ETFs Trust | |
| Category | Equity | Alternative | |
| Inception | Nov 10, 2006 | Aug 31, 2024 |
VYM vs ZSEP Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and Innovator Equity Defined Protection ETF - 1 Yr September (ZSEP) is a ETF from Innovator ETFs Trust. Over the past year VYM returned +23.24% while ZSEP returned +6.02%. Year to date, VYM is up 15.34% versus a gain of 3.71% for ZSEP.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 2.7% for ZSEP. 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 -4.0% for ZSEP. 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while ZSEP 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 2.24% against 0.00% for ZSEP.
Frequently Asked Questions
Which is cheaper, VYM or ZSEP?
VYM has an expense ratio of 0.04% while ZSEP 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 ZSEP?
Over the past year VYM returned +23.24% vs +6.02% for ZSEP, so VYM leads on 1-year performance. Over the longest common window we track (2 years), VYM annualized +7.04% vs +6.54% for ZSEP. Past performance does not guarantee future results.
Which is riskier, VYM or ZSEP?
VYM has been the more volatile fund at 14.6% annualized versus 2.7% for ZSEP. Worst drawdown: VYM -58.8% vs ZSEP -4.0%.
Should I hold both VYM and ZSEP?
VYM and ZSEP have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, VYM or ZSEP?
VYM yields 2.24% while ZSEP yields 0.00%, so VYM currently pays the higher dividend yield.
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