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VFQY vs. VYM
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VFQY vs. VYM

Last updated Jun 24, 2026

VFQY (Vanguard U.S. Quality Factor ETF) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - VFQY is a Mid Cap Blend Equities fund actively managed by Vanguard, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. VFQY is actively managed, while VYM is passively managed. Over the past 5 years, VFQY returned 8.39%/yr vs 11.88%/yr for VYM. Their correlation of 0.84 suggests significant overlap in exposure. VFQY charges 0.13%/yr vs 0.04%/yr for VYM.

Performance

VFQY vs. VYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard U.S. Quality Factor ETF (VFQY) and Vanguard High Dividend Yield ETF (VYM). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VFQY achieves a 8.55% return, which is significantly lower than VYM's 11.51% return.

VFQY

1D
-0.88%
1M
1.91%
YTD
8.55%
6M
6.89%
1Y
19.65%
3Y*
16.09%
5Y*
8.39%
10Y*
—

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)

VFQY vs. VYM - Yearly Performance Comparison

2026 (YTD)20252024202320222021202020192018
VFQY
Vanguard U.S. Quality Factor ETF		8.55%10.24%12.93%22.48%-15.74%27.96%16.97%25.75%-8.19%
VYM
Vanguard High Dividend Yield ETF		11.51%15.42%17.60%6.57%-0.43%26.20%1.15%24.06%-5.18%

Correlation

The correlation between VFQY and VYM is 0.79, 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

0.79

Correlation (3Y)
Calculated over the trailing 3-year period

0.84

Correlation (5Y)
Calculated over the trailing 5-year period

0.85

Correlation (All Time)
Calculated using the full available price history since Feb 15, 2018

0.84

The correlation between VFQY and VYM has been stable across timeframes, ranging from 0.79 to 0.85 - a consistent structural relationship.

VFQY vs. VYM - Sectors Allocation Comparison

Sectors
VFQY
VYM

Technology

25.8%
20.3%

Financial Services

18.9%
19.9%

Industrials

16.8%
11.8%

Consumer Cyclical

13.3%
6.6%

Consumer Defensive

9.2%
8.0%

Healthcare

8.9%
12.2%

Communication Services

2.8%
3.4%

Basic Materials

2.2%
3.4%

Energy

2.2%
9.1%

Real Estate

-

0.0%

Utilities

-

5.4%

Technology

VFQY
25.8%
VYM
20.3%

Financial Services

VFQY
18.9%
VYM
19.9%

Industrials

VFQY
16.8%
VYM
11.8%

Consumer Cyclical

VFQY
13.3%
VYM
6.6%

Consumer Defensive

VFQY
9.2%
VYM
8.0%

Healthcare

VFQY
8.9%
VYM
12.2%

Communication Services

VFQY
2.8%
VYM
3.4%

Basic Materials

VFQY
2.2%
VYM
3.4%

Energy

VFQY
2.2%
VYM
9.1%

Real Estate

VFQY

-

VYM
0.0%

Utilities

VFQY

-

VYM
5.4%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard U.S. Quality Factor ETF

Vanguard High Dividend Yield ETF

Often compared with VFQY:
VFQY vs. JQUAVFQY vs. VFMFVFQY vs. VFVAVFQY vs. LVHIVFQY vs. VIGVFQY vs. VFMOVFQY vs. SCHD
Often compared with VYM:
VYM vs. SCHDVYM vs. VIGVYM vs. VYMIVYM vs. FDVVVYM vs. VOOVYM vs. VTIVYM vs. DGRO

Return for Risk

VFQY vs. VYM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VFQY
VFQY Risk / Return Rank: 4444
Overall Rank
VFQY Sharpe Ratio Rank: 4343
Sharpe Ratio Rank
VFQY Sortino Ratio Rank: 4444
Sortino Ratio Rank
VFQY Omega Ratio Rank: 4040
Omega Ratio Rank
VFQY Calmar Ratio Rank: 4545
Calmar Ratio Rank
VFQY Martin Ratio Rank: 4949
Martin Ratio Rank
VYM
VYM Risk / Return Rank: 7575
Overall Rank
VYM Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
VYM Sortino Ratio Rank: 7979
Sortino Ratio Rank
VYM Omega Ratio Rank: 7575
Omega Ratio Rank
VYM Calmar Ratio Rank: 7373
Calmar Ratio Rank
VYM Martin Ratio Rank: 7474
Martin Ratio Rank
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.

VFQY vs. VYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard U.S. Quality Factor ETF (VFQY) 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.

VFQYVYMDifference
Sharpe ratioReturn per unit of total volatility
1.46
2.33

-0.88

Sortino ratioReturn per unit of downside risk
2.12
3.33

-1.21

Omega ratioGain probability vs. loss probability

1.25

1.42

-0.17

Calmar ratioReturn relative to maximum drawdown

2.16

3.61

-1.45

Martin ratioReturn relative to average drawdown

8.04

13.43

-5.39

VFQY vs. VYM - Sharpe Ratio Comparison

The current VFQY Sharpe Ratio is 1.46, which is lower than the VYM Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of VFQY 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.

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Drawdowns

VFQY vs. VYM - Drawdown Comparison

The maximum VFQY drawdown since its inception was -37.41%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for VFQY and VYM.

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Drawdown Indicators

VFQYVYMDifference

Max Drawdown

Largest peak-to-trough decline

-37.41%

-56.98%

+19.57%

Max Drawdown (1Y)

Largest decline over 1 year

-9.12%

-6.69%

-2.43%

Max Drawdown (3Y)

Largest decline over 3 years

-20.67%

-14.46%

-6.21%

Max Drawdown (5Y)

Largest decline over 5 years

-25.93%

-15.84%

-10.09%

Max Drawdown (10Y)

Largest decline over 10 years

—

-35.21%

—

Current Drawdown

Current decline from peak

-1.29%

-1.28%

-0.01%

Average Drawdown

Average peak-to-trough decline

-6.65%

-7.18%

+0.53%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.45%

1.80%

+0.65%

Volatility

VFQY vs. VYM - Volatility Comparison

Vanguard U.S. Quality Factor ETF (VFQY) has a higher volatility of 3.79% compared to Vanguard High Dividend Yield ETF (VYM) at 3.02%. This indicates that VFQY'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.

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Volatility by Period

VFQYVYMDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.79%

3.02%

+0.77%

Volatility (6M)

Calculated over the trailing 6-month period

9.84%

7.64%

+2.20%

Volatility (1Y)

Calculated over the trailing 1-year period

13.61%

10.39%

+3.22%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

18.36%

13.93%

+4.43%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.84%

16.32%

+4.52%

VFQY vs. VYM - Expense Ratio Comparison

VFQY 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

VFQY vs. VYM - Dividend Comparison

VFQY's dividend yield for the trailing twelve months is around 0.82%, less than VYM's 2.30% yield.

PositionTTM20252024202320222021202020192018201720162015
VFQY
Vanguard U.S. Quality Factor ETF		0.82%1.17%1.34%1.38%1.43%0.98%1.22%1.34%1.31%0.00%0.00%0.00%
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

VFQY and VYM have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VFQY has higher volatility (3.79%) compared to VYM (3.02%). In terms of maximum drawdown, VFQY dropped -37.41% vs VYM's -56.98%.

On 5-year performance, VYM leads with 11.88% vs 8.39% for VFQY. 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.

Over the 5-year period, VYM has performed better with a 11.88% return vs 8.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

VYM has the higher dividend yield at 2.30%, compared with 0.82% for VFQY.

VFQY is categorized as Mid Cap Blend Equities, while VYM is Dividend. Their fees differ too: 0.13% for VFQY and 0.04% for VYM.

VYM currently has the higher Sharpe Ratio (2.33 vs 1.46), 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.

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