MGV vs. VYM

Last updated Jun 24, 2026

MGV (Vanguard Mega Cap Value ETF) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - MGV is a Large Cap Value Equities fund tracking the CRSP US Mega Cap Value Index, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. Both are passively managed. Over the past 10 years, MGV returned 13.34%/yr vs 11.98%/yr for VYM. With a 0.97 correlation, they move nearly in lockstep. MGV charges 0.05%/yr vs 0.04%/yr for VYM.

Performance

MGV vs. VYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mega Cap Value ETF (MGV) and Vanguard High Dividend Yield ETF (VYM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MGV achieves a 15.89% return, which is significantly higher than VYM's 11.51% return. Over the past 10 years, MGV has outperformed VYM with an annualized return of 13.34%, while VYM has yielded a comparatively lower 11.98% annualized return.

MGV

• 1D: -0.82%
• 1M: 3.65%
• YTD: 15.89%
• 6M: 15.48%
• 1Y: 28.43%
• 3Y*: 19.53%
• 5Y*: 12.99%
• 10Y*: 13.34%

VYM

• 1D: -0.16%
• 1M: 0.26%
• YTD: 11.51%
• 6M: 10.83%
• 1Y: 24.08%
• 3Y*: 18.41%
• 5Y*: 11.88%
• 10Y*: 11.98%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MGV vs. VYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MGV Vanguard Mega Cap Value ETF	15.89%	15.45%	16.94%	9.16%	-1.22%	25.93%	2.50%	25.54%	-4.13%	16.85%
VYM Vanguard High Dividend Yield ETF	11.51%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%

Correlation

The correlation between MGV and VYM is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Dec 27, 2007	0.97

The correlation between MGV and VYM has been stable across timeframes, ranging from 0.91 to 0.97 - a consistent structural relationship.

MGV vs. VYM - Sectors Allocation Comparison

Sectors	MGV	VYM
Financial Services	22.8%	19.9%
Technology	18.5%	20.3%
Healthcare	16.0%	12.2%
Industrials	13.2%	11.8%
Consumer Defensive	11.0%	8.0%
Energy	6.0%	9.1%
Consumer Cyclical	3.4%	6.6%
Communication Services	3.2%	3.4%
Basic Materials	2.3%	3.4%
Utilities	2.3%	5.4%
Real Estate	1.2%	0.0%

Return for Risk

MGV vs. VYM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MGV

MGV Risk / Return Rank: 87
MGV Sharpe Ratio Rank: 89
MGV Sortino Ratio Rank: 90
MGV Omega Ratio Rank: 86
MGV Calmar Ratio Rank: 84
MGV Martin Ratio Rank: 85

VYM

VYM Risk / Return Rank: 75
VYM Sharpe Ratio Rank: 76
VYM Sortino Ratio Rank: 79
VYM Omega Ratio Rank: 75
VYM Calmar Ratio Rank: 73
VYM Martin Ratio Rank: 74

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MGV vs. VYM - Risk-Adjusted Trends 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MGV	VYM	Difference
Sharpe ratio: Return per unit of total volatility	2.81	2.33	+0.48
Sortino ratio: Return per unit of downside risk	3.99	3.33	+0.66
Omega ratio: Gain probability vs. loss probability	1.50	1.42	+0.08
Calmar ratio: Return relative to maximum drawdown	4.45	3.61	+0.84
Martin ratio: Return relative to average drawdown	16.89	13.43	+3.46

MGV vs. VYM - Sharpe Ratio Comparison

The current MGV Sharpe Ratio is 2.81, which is comparable to the VYM Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of MGV and VYM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MGV vs. VYM - Drawdown Comparison

The maximum MGV drawdown since its inception was -56.07%, 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.

Drawdown Indicators

	MGV	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-56.07%	-56.98%	+0.91%
Max Drawdown (1Y) Largest decline over 1 year	-6.42%	-6.69%	+0.27%
Max Drawdown (3Y) Largest decline over 3 years	-13.18%	-14.46%	+1.28%
Max Drawdown (5Y) Largest decline over 5 years	-16.54%	-15.84%	-0.70%
Max Drawdown (10Y) Largest decline over 10 years	-35.41%	-35.21%	-0.20%
Current Drawdown Current decline from peak	-0.82%	-1.28%	+0.46%
Average Drawdown Average peak-to-trough decline	-7.77%	-7.18%	-0.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.69%	1.80%	-0.11%

Volatility

MGV vs. VYM - Volatility Comparison

Vanguard Mega Cap Value ETF (MGV) has a higher volatility of 3.49% compared to Vanguard High Dividend Yield ETF (VYM) at 3.02%. This indicates that MGV's price experiences larger fluctuations and is considered to be riskier than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MGV	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.49%	3.02%	+0.47%
Volatility (6M) Calculated over the trailing 6-month period	7.82%	7.64%	+0.18%
Volatility (1Y) Calculated over the trailing 1-year period	10.18%	10.39%	-0.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.58%	13.93%	-0.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.32%	16.32%	0.00%

MGV vs. VYM - Expense Ratio Comparison

MGV has a 0.05% expense ratio, which is higher than VYM's 0.04% 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%.

Dividends

MGV vs. VYM - Dividend Comparison

MGV's dividend yield for the trailing twelve months is around 1.84%, less than VYM's 2.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGV Vanguard Mega Cap Value ETF	1.84%	2.04%	2.31%	2.48%	2.45%	2.17%	2.47%	2.69%	2.65%	2.34%	2.53%	2.59%
VYM Vanguard High Dividend Yield ETF	2.30%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Frequently Asked Questions

Can I hold both MGV and VYM in my portfolio?

With a correlation of 0.91, MGV and VYM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, MGV or VYM?

MGV has higher volatility (3.49%) compared to VYM (3.02%). In terms of maximum drawdown, MGV dropped -56.07% vs VYM's -56.98%.

Which ETF is better, MGV or VYM?

On 10-year performance, MGV leads with 13.34% vs 11.98% for VYM. On fees, VYM is cheaper at 0.04% per year. On volatility, VYM has been the lower-risk option at 3.02%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MGV or VYM?

Over the 10-year period, MGV has performed better with a 13.34% return vs 11.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MGV or VYM?

VYM is cheaper with a 0.04% expense ratio, compared with 0.05% for MGV.

Which ETF pays a higher dividend yield, MGV or VYM?

VYM has the higher dividend yield at 2.30%, compared with 1.84% for MGV.

What is the main difference between MGV and VYM?

MGV is categorized as Large Cap Value Equities, while VYM is Dividend. MGV tracks CRSP US Mega Cap Value Index, while VYM tracks FTSE High Dividend Yield Index. Their fees differ too: 0.05% for MGV and 0.04% for VYM.

Which has better risk-adjusted returns?

MGV currently has the higher Sharpe Ratio (2.81 vs 2.33), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.