VEIPX vs. VYM

Last updated Aug 2, 2026

VEIPX (Vanguard Equity Income Fund Investor Shares) and VYM (Vanguard High Dividend Yield ETF) are both Dividend funds from Vanguard. VEIPX is actively managed, while VYM is passively managed. Over the past 10 years, VEIPX returned 11.72%/yr vs 11.71%/yr for VYM. Their 0.98 correlation means they have historically moved very closely together. VEIPX charges 0.28%/yr vs 0.04%/yr for VYM.

Performance

VEIPX vs. VYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Equity Income Fund Investor Shares (VEIPX) 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, VEIPX achieves a 11.80% return, which is significantly lower than VYM's 14.21% return. Both investments have delivered pretty close results over the past 10 years, with VEIPX having a 11.72% annualized return and VYM not far behind at 11.71%.

VEIPX

• 1D: 0.20%
• 1M: 1.91%
• 6M: 8.14%
• YTD: 11.80%
• 1Y: 23.19%
• 3Y*: 15.46%
• 5Y*: 11.63%
• 10Y*: 11.72%
• ALL TIME*: 10.38%

VYM

• 1D: 0.00%
• 1M: 1.56%
• 6M: 9.31%
• YTD: 14.21%
• 1Y: 24.90%
• 3Y*: 16.96%
• 5Y*: 12.20%
• 10Y*: 11.71%
• ALL TIME*: 9.38%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VEIPX Vanguard Equity Income Fund Investor Shares	$0.00	$0.00	$0.00
VYM Vanguard High Dividend Yield ETF	$195.34M	$198.02M	$200.78M

VEIPX vs. VYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VEIPX Vanguard Equity Income Fund Investor Shares	11.80%	17.14%	14.80%	7.66%	-0.16%	25.41%	2.97%	25.21%	-5.75%	17.60%
VYM Vanguard High Dividend Yield ETF	14.21%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%

Correlation

The correlation between VEIPX and VYM is 0.96 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.96
Correlation (3Y) Balances recent behavior with more history.	0.98
Correlation (5Y) Shows whether the relationship held over a longer period.	0.98
Correlation (10Y) Provides a long-term view across more market conditions.	0.99
Correlation (All Time) Calculated using the full available price history since Nov 16, 2006	0.98

The correlation between VEIPX and VYM has been stable across timeframes, ranging from 0.96 to 0.99 - a consistent structural relationship.

VEIPX vs. VYM - Sectors Allocation Comparison

Sectors	VEIPX	VYM
Financial Services	19.8%	21.0%
Healthcare	14.8%	13.2%
Technology	14.1%	17.8%
Industrials	9.4%	12.6%
Consumer Defensive	9.4%	8.1%
Energy	8.3%	8.6%
Utilities	7.0%	5.7%
Consumer Cyclical	5.8%	6.8%
Basic Materials	3.6%	3.3%
Communication Services	2.9%	3.0%
Real Estate	2.5%	0.0%

Return for Risk

VEIPX vs. VYM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VEIPX

VEIPX Risk / Return Rank: 84
VEIPX Sharpe Ratio Rank: 84
VEIPX Sortino Ratio Rank: 83
VEIPX Omega Ratio Rank: 81
VEIPX Calmar Ratio Rank: 85
VEIPX Martin Ratio Rank: 87

VYM

VYM Risk / Return Rank: 90
VYM Sharpe Ratio Rank: 92
VYM Sortino Ratio Rank: 92
VYM Omega Ratio Rank: 91
VYM Calmar Ratio Rank: 88
VYM Martin Ratio Rank: 88

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VEIPX vs. VYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Equity Income Fund Investor Shares (VEIPX) 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.

	VEIPX	VYM	Difference
Sharpe ratio: Return per unit of total volatility	2.01	2.34	-0.32
Sortino ratio: Return per unit of downside risk	2.88	3.35	-0.46
Omega ratio: Gain probability vs. loss probability	1.37	1.43	-0.06
Calmar ratio: Return relative to maximum drawdown	2.89	3.56	-0.67
Martin ratio: Return relative to average drawdown	10.92	13.40	-2.48

VEIPX vs. VYM - Sharpe Ratio Comparison

The current VEIPX Sharpe Ratio is 2.01, which is comparable to the VYM Sharpe Ratio of 2.34. The chart below compares the historical Sharpe Ratios of VEIPX 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

VEIPX vs. VYM - Drawdown Comparison

The maximum VEIPX drawdown since its inception was -54.12%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for VEIPX and VYM.

Drawdown Indicators

	VEIPX	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-54.12%	-56.98%	+2.86%
Max Drawdown (1Y) Largest decline over 1 year	-7.15%	-6.69%	-0.46%
Max Drawdown (3Y) Largest decline over 3 years	-13.39%	-14.46%	+1.07%
Max Drawdown (5Y) Largest decline over 5 years	-15.16%	-15.84%	+0.68%
Max Drawdown (10Y) Largest decline over 10 years	-35.26%	-35.21%	-0.05%
Current Drawdown Current decline from peak	-0.85%	-1.15%	+0.30%
Average Drawdown Average peak-to-trough decline	-5.48%	-7.14%	+1.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.90%	1.78%	+0.12%

Volatility

VEIPX vs. VYM - Volatility Comparison

Vanguard Equity Income Fund Investor Shares (VEIPX) and Vanguard High Dividend Yield ETF (VYM) have volatilities of 2.56% and 2.46%, 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.

Volatility by Period

	VEIPX	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.56%	2.46%	+0.10%
Volatility (6M) Calculated over the trailing 6-month period	7.38%	7.42%	-0.04%
Volatility (1Y) Calculated over the trailing 1-year period	10.28%	10.29%	-0.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.85%	13.87%	-0.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.25%	16.29%	-0.04%

VEIPX vs. VYM - Expense Ratio Comparison

VEIPX has a 0.28% expense ratio, which is higher than VYM's 0.04% expense ratio.

Dividends

VEIPX vs. VYM - Dividend Comparison

VEIPX's dividend yield for the trailing twelve months is around 9.83%, more than VYM's 2.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEIPX Vanguard Equity Income Fund Investor Shares	9.83%	10.94%	9.74%	7.87%	8.69%	7.62%	2.77%	4.36%	10.87%	2.98%	3.78%	6.39%
VYM Vanguard High Dividend Yield ETF	2.24%	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 VEIPX and VYM in my portfolio?

With a correlation of 0.96, VEIPX 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, VEIPX or VYM?

VEIPX has higher volatility (2.56%) compared to VYM (2.46%). In terms of maximum drawdown, VEIPX dropped -54.12% vs VYM's -56.98%.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.34 vs 2.01), 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.