VFMV vs. VYM

Last updated Aug 2, 2026

VFMV (Vanguard U.S. Minimum Volatility ETF) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - VFMV is a Low Volatility fund actively managed by Vanguard, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. VFMV is actively managed, while VYM is passively managed. Over the past 5 years, VFMV returned 9.39%/yr vs 12.20%/yr for VYM. Their correlation of 0.81 means they have usually moved in the same direction. VFMV charges 0.13%/yr vs 0.04%/yr for VYM.

Performance

VFMV vs. VYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard U.S. Minimum Volatility ETF (VFMV) 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, VFMV achieves a 11.10% return, which is significantly lower than VYM's 14.21% return.

VFMV

• 1D: 0.45%
• 1M: 2.10%
• 6M: 7.34%
• YTD: 11.10%
• 1Y: 16.07%
• 3Y*: 14.38%
• 5Y*: 9.39%
• 10Y*: —
• ALL TIME*: 10.08%

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)
VFMV Vanguard U.S. Minimum Volatility ETF	$1.77M	$2.11M	$2.29M
VYM Vanguard High Dividend Yield ETF	$195.34M	$198.02M	$200.78M

VFMV vs. VYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
VFMV Vanguard U.S. Minimum Volatility ETF	11.10%	10.52%	16.91%	8.86%	-5.73%	20.75%	-0.19%	27.26%	-0.34%
VYM Vanguard High Dividend Yield ETF	14.21%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.18%

Correlation

The correlation between VFMV and VYM is 0.80, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.80
Correlation (3Y) Balances recent behavior with more history.	0.84
Correlation (5Y) Shows whether the relationship held over a longer period.	0.86
Correlation (All Time) Calculated using the full available price history since Feb 15, 2018	0.81

The correlation between VFMV and VYM has been stable across timeframes, ranging from 0.80 to 0.86 - a consistent structural relationship.

VFMV vs. VYM - Sectors Allocation Comparison

Sectors	VFMV	VYM
Technology	25.1%	17.8%
Communication Services	10.7%	3.0%
Financial Services	10.6%	21.0%
Industrials	10.1%	12.6%
Healthcare	10.1%	13.2%
Consumer Defensive	9.5%	8.1%
Consumer Cyclical	6.9%	6.8%
Utilities	6.7%	5.7%
Real Estate	6.4%	0.0%
Energy	3.9%	8.6%
Basic Materials	-	3.3%

Return for Risk

VFMV vs. VYM — Risk / Return Rank

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

VFMV

VFMV Risk / Return Rank: 77
VFMV Sharpe Ratio Rank: 77
VFMV Sortino Ratio Rank: 79
VFMV Omega Ratio Rank: 75
VFMV Calmar Ratio Rank: 75
VFMV Martin Ratio Rank: 79

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.

VFMV vs. VYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Minimum Volatility ETF (VFMV) 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.

	VFMV	VYM	Difference
Sharpe ratio: Return per unit of total volatility	1.76	2.34	-0.58
Sortino ratio: Return per unit of downside risk	2.55	3.35	-0.79
Omega ratio: Gain probability vs. loss probability	1.31	1.43	-0.11
Calmar ratio: Return relative to maximum drawdown	2.61	3.56	-0.95
Martin ratio: Return relative to average drawdown	10.07	13.40	-3.33

VFMV vs. VYM - Sharpe Ratio Comparison

The current VFMV Sharpe Ratio is 1.76, which is comparable to the VYM Sharpe Ratio of 2.34. The chart below compares the historical Sharpe Ratios of VFMV 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

VFMV vs. VYM - Drawdown Comparison

The maximum VFMV drawdown since its inception was -33.64%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for VFMV and VYM.

Drawdown Indicators

	VFMV	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-33.64%	-56.98%	+23.34%
Max Drawdown (1Y) Largest decline over 1 year	-6.00%	-6.69%	+0.69%
Max Drawdown (3Y) Largest decline over 3 years	-10.35%	-14.46%	+4.11%
Max Drawdown (5Y) Largest decline over 5 years	-15.41%	-15.84%	+0.43%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.21%	—
Current Drawdown Current decline from peak	-1.16%	-1.15%	-0.01%
Average Drawdown Average peak-to-trough decline	-3.59%	-7.14%	+3.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.56%	1.78%	-0.22%

Volatility

VFMV vs. VYM - Volatility Comparison

Vanguard U.S. Minimum Volatility ETF (VFMV) has a higher volatility of 2.73% compared to Vanguard High Dividend Yield ETF (VYM) at 2.46%. This indicates that VFMV'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

	VFMV	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.73%	2.46%	+0.27%
Volatility (6M) Calculated over the trailing 6-month period	6.57%	7.42%	-0.85%
Volatility (1Y) Calculated over the trailing 1-year period	8.96%	10.29%	-1.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.76%	13.87%	-2.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.16%	16.29%	-2.13%

VFMV vs. VYM - Expense Ratio Comparison

VFMV has a 0.13% 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

VFMV vs. VYM - Dividend Comparison

VFMV's dividend yield for the trailing twelve months is around 1.74%, less than VYM's 2.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VFMV Vanguard U.S. Minimum Volatility ETF	1.74%	2.12%	1.46%	2.20%	2.08%	1.31%	2.14%	2.43%	2.29%	0.00%	0.00%	0.00%
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 VFMV and VYM in my portfolio?

VFMV and VYM have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFMV or VYM?

VFMV has higher volatility (2.73%) compared to VYM (2.46%). In terms of maximum drawdown, VFMV dropped -33.64% vs VYM's -56.98%.

Which ETF is better, VFMV or VYM?

On 5-year performance, VYM leads with 12.20% vs 9.39% for VFMV. On fees, VYM is cheaper at 0.04% per year. On volatility, VYM has been the lower-risk option at 2.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFMV or VYM?

Over the 5-year period, VYM has performed better with a 12.20% return vs 9.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFMV or VYM?

VYM is cheaper with a 0.04% expense ratio, compared with 0.13% for VFMV.

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

VYM has the higher dividend yield at 2.24%, compared with 1.74% for VFMV.

What is the main difference between VFMV and VYM?

VFMV is categorized as Low Volatility, while VYM is Dividend. Their fees differ too: 0.13% for VFMV and 0.04% for VYM.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.34 vs 1.76), 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.