VGVT vs. VYM

Last updated Aug 2, 2026

VGVT (Vanguard Government Securities Active ETF) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - VGVT is a Intermediate Core Bond fund actively managed by Vanguard, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. VGVT is actively managed, while VYM is passively managed. Over the past year, VGVT returned 1.76% vs 24.90% for VYM. Their 0.28 correlation means their historical movements had little consistent relationship. VGVT charges 0.10%/yr vs 0.04%/yr for VYM.

Performance

VGVT vs. VYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Government Securities Active ETF (VGVT) 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, VGVT achieves a -0.65% return, which is significantly lower than VYM's 14.21% return.

VGVT

• 1D: -0.38%
• 1M: -1.01%
• 6M: -0.94%
• YTD: -0.65%
• 1Y: 1.76%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 2.72%

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)
VGVT Vanguard Government Securities Active ETF	$256.38K	$357.24K	$499.27K
VYM Vanguard High Dividend Yield ETF	$195.34M	$198.02M	$200.78M

VGVT vs. VYM - Yearly Performance Comparison

	2026 (YTD)	2025
VGVT Vanguard Government Securities Active ETF	-0.65%	3.56%
VYM Vanguard High Dividend Yield ETF	14.21%	7.89%

Correlation

The correlation between VGVT and VYM is 0.27, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.27
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025	0.28

Return for Risk

VGVT vs. VYM — Risk / Return Rank

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

VGVT

VGVT Risk / Return Rank: 29
VGVT Sharpe Ratio Rank: 32
VGVT Sortino Ratio Rank: 30
VGVT Omega Ratio Rank: 28
VGVT Calmar Ratio Rank: 29
VGVT Martin Ratio Rank: 27

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.

VGVT vs. VYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Government Securities Active ETF (VGVT) 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.

	VGVT	VYM	Difference
Sharpe ratio: Return per unit of total volatility	0.78	2.34	-1.56
Sortino ratio: Return per unit of downside risk	1.14	3.35	-2.21
Omega ratio: Gain probability vs. loss probability	1.13	1.43	-0.29
Calmar ratio: Return relative to maximum drawdown	0.92	3.56	-2.65
Martin ratio: Return relative to average drawdown	2.19	13.40	-11.21

VGVT vs. VYM - Sharpe Ratio Comparison

The current VGVT Sharpe Ratio is 0.78, which is lower than the VYM Sharpe Ratio of 2.34. The chart below compares the historical Sharpe Ratios of VGVT 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

VGVT vs. VYM - Drawdown Comparison

The maximum VGVT drawdown since its inception was -2.77%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for VGVT and VYM.

Drawdown Indicators

	VGVT	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-2.77%	-56.98%	+54.21%
Max Drawdown (1Y) Largest decline over 1 year	-2.77%	-6.69%	+3.92%
Max Drawdown (3Y) Largest decline over 3 years	—	-14.46%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-15.84%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.21%	—
Current Drawdown Current decline from peak	-2.50%	-1.15%	-1.35%
Average Drawdown Average peak-to-trough decline	-0.83%	-7.14%	+6.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.16%	1.78%	-0.62%

Volatility

VGVT vs. VYM - Volatility Comparison

The current volatility for Vanguard Government Securities Active ETF (VGVT) is 0.99%, while Vanguard High Dividend Yield ETF (VYM) has a volatility of 2.46%. This indicates that VGVT experiences smaller price fluctuations and is considered to be less risky than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGVT	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.99%	2.46%	-1.47%
Volatility (6M) Calculated over the trailing 6-month period	2.54%	7.42%	-4.88%
Volatility (1Y) Calculated over the trailing 1-year period	3.28%	10.29%	-7.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.27%	13.87%	-10.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.27%	16.29%	-13.02%

VGVT vs. VYM - Expense Ratio Comparison

VGVT has a 0.10% 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

VGVT vs. VYM - Dividend Comparison

VGVT's dividend yield for the trailing twelve months is around 4.40%, more than VYM's 2.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGVT Vanguard Government Securities Active ETF	4.14%	2.29%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	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 VGVT and VYM in my portfolio?

VGVT and VYM have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGVT or VYM?

VYM has higher volatility (2.46%) compared to VGVT (0.99%). In terms of maximum drawdown, VGVT dropped -2.77% vs VYM's -56.98%.

Which ETF is better, VGVT or VYM?

On 1-year performance, VYM leads with 24.90% vs 1.76% for VGVT. On fees, VYM is cheaper at 0.04% per year. On volatility, VGVT has been the lower-risk option at 0.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGVT or VYM?

Over the 1-year period, VYM has performed better with a 24.90% return vs 1.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGVT or VYM?

VYM is cheaper with a 0.04% expense ratio, compared with 0.10% for VGVT.

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

VGVT has the higher dividend yield at 4.14%, compared with 2.24% for VYM.

What is the main difference between VGVT and VYM?

VGVT is categorized as Intermediate Core Bond, while VYM is Dividend. Their fees differ too: 0.10% for VGVT and 0.04% for VYM.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.34 vs 0.78), 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.