MGV vs. VYM
Compare and contrast key facts about Vanguard Mega Cap Value ETF (MGV) and Vanguard High Dividend Yield ETF (VYM).
MGV and VYM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. MGV is a passively managed fund by Vanguard that tracks the performance of the MSCI US Large Cap Value Index. It was launched on Dec 17, 2007. VYM is a passively managed fund by Vanguard that tracks the performance of the FTSE High Dividend Yield Index. It was launched on Nov 10, 2006. Both MGV and VYM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: MGV or VYM.
Key characteristics
| MGV | VYM | |
|---|---|---|
| YTD Return | 7.08% | 6.24% |
| 1Y Return | 17.10% | 14.71% |
| 3Y Return (Ann) | 8.70% | 7.82% |
| 5Y Return (Ann) | 10.65% | 9.59% |
| 10Y Return (Ann) | 10.41% | 9.76% |
| Sharpe Ratio | 1.56 | 1.22 |
| Daily Std Dev | 10.10% | 10.98% |
| Max Drawdown | -56.31% | -56.98% |
| Current Drawdown | -2.59% | -2.52% |
Correlation
The correlation between MGV and VYM is 0.97, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
MGV vs. VYM - Performance Comparison
In the year-to-date period, MGV achieves a 7.08% return, which is significantly higher than VYM's 6.24% return. Over the past 10 years, MGV has outperformed VYM with an annualized return of 10.41%, while VYM has yielded a comparatively lower 9.76% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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MGV vs. VYM - Expense Ratio Comparison
MGV has a 0.07% expense ratio, which is higher than VYM's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
MGV vs. VYM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mega Cap Value ETF (MGV) and Vanguard High Dividend Yield ETF (VYM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
MGV vs. VYM - Dividend Comparison
MGV's dividend yield for the trailing twelve months is around 2.42%, less than VYM's 2.90% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MGV Vanguard Mega Cap Value ETF | 2.42% | 2.48% | 2.45% | 2.17% | 2.47% | 2.69% | 2.65% | 2.34% | 2.53% | 2.59% | 2.26% | 2.29% |
VYM Vanguard High Dividend Yield ETF | 2.90% | 3.12% | 3.01% | 2.76% | 3.18% | 3.03% | 3.40% | 2.80% | 2.91% | 3.22% | 2.78% | 2.81% |
Drawdowns
MGV vs. VYM - Drawdown Comparison
The maximum MGV drawdown since its inception was -56.31%, roughly equal to the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for MGV and VYM. For additional features, visit the drawdowns tool.
Volatility
MGV vs. VYM - Volatility Comparison
Vanguard Mega Cap Value ETF (MGV) and Vanguard High Dividend Yield ETF (VYM) have volatilities of 3.23% and 3.36%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.