VFMO vs. VHYAX

Last updated Jun 16, 2026

VFMO (Vanguard U.S. Momentum Factor ETF) and VHYAX (Vanguard High Dividend Yield Index Fund Admiral Shares) are both funds - VFMO is a Momentum fund actively managed by Vanguard, while VHYAX is a Large Cap Value Equities fund tracking the FTSE High Dividend Yield Index. VFMO is actively managed, while VHYAX is passively managed. Over the past 5 years, VFMO returned 14.45%/yr vs 11.56%/yr for VHYAX. A 0.73 correlation means they provide meaningful diversification when combined. VFMO charges 0.13%/yr vs 0.08%/yr for VHYAX.

Performance

VFMO vs. VHYAX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard U.S. Momentum Factor ETF (VFMO) and Vanguard High Dividend Yield Index Fund Admiral Shares (VHYAX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFMO achieves a 26.55% return, which is significantly higher than VHYAX's 12.41% return.

VFMO

• 1D: 1.28%
• 1M: 6.71%
• YTD: 26.55%
• 6M: 26.16%
• 1Y: 48.27%
• 3Y*: 27.53%
• 5Y*: 14.45%
• 10Y*: —

VHYAX

• 1D: 0.81%
• 1M: 2.98%
• YTD: 12.41%
• 6M: 11.32%
• 1Y: 25.93%
• 3Y*: 18.05%
• 5Y*: 11.56%
• 10Y*: —

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

VFMO vs. VHYAX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
VFMO Vanguard U.S. Momentum Factor ETF	26.55%	17.39%	26.14%	16.25%	-12.84%	19.16%	31.36%	15.37%
VHYAX Vanguard High Dividend Yield Index Fund Admiral Shares	12.41%	15.39%	17.39%	6.68%	-0.45%	26.08%	1.06%	16.67%

Correlation

The correlation between VFMO and VHYAX is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.72
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (All Time) Calculated using the full available price history since Feb 7, 2019	0.73

The correlation between VFMO and VHYAX has been stable across timeframes, ranging from 0.69 to 0.78 - a consistent structural relationship.

VFMO vs. VHYAX - Sectors Allocation Comparison

Sectors	VFMO	VHYAX
Industrials	24.7%	12.1%
Healthcare	22.9%	12.2%
Technology	17.5%	17.7%
Consumer Cyclical	8.7%	6.7%
Energy	7.3%	9.8%
Financial Services	6.5%	20.5%
Basic Materials	6.4%	3.5%
Communication Services	3.4%	3.5%
Consumer Defensive	2.5%	8.1%
Utilities	0.2%	5.7%
Real Estate	0.1%	0.0%

Return for Risk

VFMO vs. VHYAX — Risk / Return Rank

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

VFMO

VFMO Risk / Return Rank: 78
VFMO Sharpe Ratio Rank: 77
VFMO Sortino Ratio Rank: 69
VFMO Omega Ratio Rank: 70
VFMO Calmar Ratio Rank: 86
VFMO Martin Ratio Rank: 87

VHYAX

VHYAX Risk / Return Rank: 82
VHYAX Sharpe Ratio Rank: 82
VHYAX Sortino Ratio Rank: 81
VHYAX Omega Ratio Rank: 76
VHYAX Calmar Ratio Rank: 86
VHYAX Martin Ratio Rank: 85

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.

VFMO vs. VHYAX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Momentum Factor ETF (VFMO) and Vanguard High Dividend Yield Index Fund Admiral Shares (VHYAX). 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.

	VFMO	VHYAX	Difference
Sharpe ratio: Return per unit of total volatility	2.20	2.35	-0.16
Sortino ratio: Return per unit of downside risk	2.81	3.34	-0.53
Omega ratio: Gain probability vs. loss probability	1.37	1.42	-0.05
Calmar ratio: Return relative to maximum drawdown	4.42	3.67	+0.75
Martin ratio: Return relative to average drawdown	16.46	13.79	+2.67

VFMO vs. VHYAX - Sharpe Ratio Comparison

The current VFMO Sharpe Ratio is 2.20, which is comparable to the VHYAX Sharpe Ratio of 2.35. The chart below compares the historical Sharpe Ratios of VFMO and VHYAX, 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

VFMO vs. VHYAX - Drawdown Comparison

The maximum VFMO drawdown since its inception was -36.77%, roughly equal to the maximum VHYAX drawdown of -35.14%. Use the drawdown chart below to compare losses from any high point for VFMO and VHYAX.

Drawdown Indicators

	VFMO	VHYAX	Difference
Max Drawdown Largest peak-to-trough decline	-36.77%	-35.14%	-1.63%
Max Drawdown (1Y) Largest decline over 1 year	-10.98%	-6.75%	-4.23%
Max Drawdown (3Y) Largest decline over 3 years	-24.40%	-14.42%	-9.98%
Max Drawdown (5Y) Largest decline over 5 years	-25.80%	-15.87%	-9.93%
Current Drawdown Current decline from peak	0.00%	-0.45%	+0.45%
Average Drawdown Average peak-to-trough decline	-7.74%	-3.76%	-3.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.94%	1.80%	+1.14%

Volatility

VFMO vs. VHYAX - Volatility Comparison

Vanguard U.S. Momentum Factor ETF (VFMO) has a higher volatility of 8.34% compared to Vanguard High Dividend Yield Index Fund Admiral Shares (VHYAX) at 3.38%. This indicates that VFMO's price experiences larger fluctuations and is considered to be riskier than VHYAX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFMO	VHYAX	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.34%	3.38%	+4.96%
Volatility (6M) Calculated over the trailing 6-month period	17.55%	7.87%	+9.68%
Volatility (1Y) Calculated over the trailing 1-year period	22.14%	10.53%	+11.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.89%	14.03%	+7.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.63%	17.95%	+5.68%

VFMO vs. VHYAX - Expense Ratio Comparison

VFMO has a 0.13% expense ratio, which is higher than VHYAX's 0.08% 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

VFMO vs. VHYAX - Dividend Comparison

VFMO's dividend yield for the trailing twelve months is around 0.61%, less than VHYAX's 2.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
VFMO Vanguard U.S. Momentum Factor ETF	0.61%	0.82%	0.72%	0.89%	1.72%	0.81%	0.45%	1.22%	0.70%
VHYAX Vanguard High Dividend Yield Index Fund Admiral Shares	2.17%	2.42%	2.72%	3.09%	2.98%	2.74%	3.16%	3.00%	0.00%

Frequently Asked Questions

Can I hold both VFMO and VHYAX in my portfolio?

VFMO and VHYAX have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFMO or VHYAX?

VFMO has higher volatility (8.34%) compared to VHYAX (3.38%). In terms of maximum drawdown, VFMO dropped -36.77% vs VHYAX's -35.14%.

Which has better risk-adjusted returns?

VHYAX currently has the higher Sharpe Ratio (2.35 vs 2.19), 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.