VYM vs ZTRE
Vanguard High Dividend Yield ETF vs F/m 3-Year Investment Grade Corporate Bond ETF
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 | ZTRE | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.15% | |
| AUM | $81.6B | $42M | |
| Dividend Yield | 2.24% | 4.57% | |
| Holdings | 616 | 490 | |
| YTD Return | +15.34% | +1.10% | |
| 1Y Return | +23.24% | +3.21% | |
| 3Y Return (annualized) | +19.22% | - | |
| 5Y Return (annualized) | +12.21% | - | |
| Volatility (annualized) | 14.6% | 2.0% | |
| Max Drawdown | -58.8% | -1.4% | |
| Fund Family | Vanguard (US) | F-m investments | |
| Category | Equity | Fixed Income | |
| Inception | Nov 10, 2006 | Jan 10, 2024 |
VYM vs ZTRE Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and F/m 3-Year Investment Grade Corporate Bond ETF (ZTRE) is a ETF from F-m investments. Over the past year VYM returned +23.24% while ZTRE returned +3.21%. Year to date, VYM is up 15.34% versus a gain of 1.10% for ZTRE.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 2.0% for ZTRE. 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 -1.4% for ZTRE. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while ZTRE 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 4.57% for ZTRE.
Holdings Overlap
VYM and ZTRE share 1 holdings out of 974 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VYM | Weight in ZTRE | Difference |
|---|---|---|---|
| MSCI 4 11/15/29 144A | 0.16% | 0.21% | 0.05% |
Frequently Asked Questions
Which is cheaper, VYM or ZTRE?
VYM has an expense ratio of 0.04% while ZTRE 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 ZTRE?
Over the past year VYM returned +23.24% vs +3.21% for ZTRE, so VYM leads on 1-year performance. Over the longest common window we track (3 years), VYM annualized +7.04% vs +4.72% for ZTRE. Past performance does not guarantee future results.
Which is riskier, VYM or ZTRE?
VYM has been the more volatile fund at 14.6% annualized versus 2.0% for ZTRE. Worst drawdown: VYM -58.8% vs ZTRE -1.4%.
Should I hold both VYM and ZTRE?
VYM and ZTRE have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and ZTRE?
VYM and ZTRE share 1 common holdings with a 0.2% weight overlap. Combined, they hold 974 unique securities.
Which pays a higher dividend, VYM or ZTRE?
VYM yields 2.24% while ZTRE yields 4.57%, so ZTRE currently pays the higher dividend yield.
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