VLU vs. VYM

Last updated Jun 23, 2026

VLU (SPDR S&P 1500 Value Tilt ETF) and VYM (Vanguard High Dividend Yield ETF) are both exchange-traded funds - VLU is a Large Cap Value Equities fund tracking the S&P 1500 Low Valuation Tilt Index, while VYM is a Dividend fund tracking the FTSE High Dividend Yield Index. Both are passively managed. Over the past 10 years, VLU returned 14.21%/yr vs 12.00%/yr for VYM. A 0.72 correlation means they provide meaningful diversification when combined. VLU charges 0.12%/yr vs 0.04%/yr for VYM.

Performance

VLU vs. VYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P 1500 Value Tilt ETF (VLU) 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, VLU achieves a 13.20% return, which is significantly higher than VYM's 11.70% return. Over the past 10 years, VLU has outperformed VYM with an annualized return of 14.21%, while VYM has yielded a comparatively lower 12.00% annualized return.

VLU

• 1D: 0.07%
• 1M: 0.71%
• YTD: 13.20%
• 6M: 12.60%
• 1Y: 28.80%
• 3Y*: 20.24%
• 5Y*: 12.54%
• 10Y*: 14.21%

VYM

• 1D: 0.11%
• 1M: 0.42%
• YTD: 11.70%
• 6M: 11.13%
• 1Y: 25.24%
• 3Y*: 18.48%
• 5Y*: 12.10%
• 10Y*: 12.00%

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

VLU vs. VYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VLU SPDR S&P 1500 Value Tilt ETF	13.20%	16.70%	17.24%	17.18%	-8.24%	30.95%	9.91%	26.20%	-7.89%	18.16%
VYM Vanguard High Dividend Yield ETF	11.70%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%

Correlation

The correlation between VLU and VYM is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since Oct 25, 2012	0.73

The correlation between VLU and VYM shifts across timeframes, from 0.72 (all time) to 0.94 (5 years), reflecting how their relationship changes across market environments.

VLU vs. VYM - Sectors Allocation Comparison

Sectors	VLU	VYM
Technology	19.1%	20.3%
Financial Services	18.4%	19.9%
Healthcare	11.5%	12.2%
Consumer Cyclical	10.7%	6.6%
Communication Services	8.8%	3.4%
Industrials	8.3%	11.8%
Consumer Defensive	7.1%	8.0%
Energy	6.6%	9.1%
Utilities	3.5%	5.4%
Real Estate	3.4%	0.0%
Basic Materials	2.6%	3.4%

Return for Risk

VLU vs. VYM — Risk / Return Rank

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

VLU

VLU Risk / Return Rank: 86
VLU Sharpe Ratio Rank: 85
VLU Sortino Ratio Rank: 85
VLU Omega Ratio Rank: 84
VLU Calmar Ratio Rank: 86
VLU Martin Ratio Rank: 88

VYM

VYM Risk / Return Rank: 78
VYM Sharpe Ratio Rank: 80
VYM Sortino Ratio Rank: 82
VYM Omega Ratio Rank: 78
VYM Calmar Ratio Rank: 77
VYM Martin Ratio Rank: 76

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.

VLU vs. VYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P 1500 Value Tilt ETF (VLU) 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.

	VLU	VYM	Difference
Sharpe ratio: Return per unit of total volatility	2.64	2.44	+0.20
Sortino ratio: Return per unit of downside risk	3.66	3.48	+0.18
Omega ratio: Gain probability vs. loss probability	1.48	1.44	+0.04
Calmar ratio: Return relative to maximum drawdown	4.56	3.79	+0.78
Martin ratio: Return relative to average drawdown	18.19	14.09	+4.09

VLU vs. VYM - Sharpe Ratio Comparison

The current VLU Sharpe Ratio is 2.64, which is comparable to the VYM Sharpe Ratio of 2.44. The chart below compares the historical Sharpe Ratios of VLU 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

VLU vs. VYM - Drawdown Comparison

The maximum VLU drawdown since its inception was -37.39%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for VLU and VYM.

Drawdown Indicators

	VLU	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-37.39%	-56.98%	+19.59%
Max Drawdown (1Y) Largest decline over 1 year	-6.34%	-6.69%	+0.35%
Max Drawdown (3Y) Largest decline over 3 years	-16.22%	-14.46%	-1.76%
Max Drawdown (5Y) Largest decline over 5 years	-19.55%	-15.84%	-3.71%
Max Drawdown (10Y) Largest decline over 10 years	-37.39%	-35.21%	-2.18%
Current Drawdown Current decline from peak	-1.25%	-1.12%	-0.13%
Average Drawdown Average peak-to-trough decline	-3.73%	-7.18%	+3.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.59%	1.80%	-0.21%

Volatility

VLU vs. VYM - Volatility Comparison

SPDR S&P 1500 Value Tilt ETF (VLU) and Vanguard High Dividend Yield ETF (VYM) have volatilities of 2.94% and 3.02%, 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

	VLU	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.94%	3.02%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	7.90%	7.64%	+0.26%
Volatility (1Y) Calculated over the trailing 1-year period	11.00%	10.41%	+0.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.39%	13.93%	+1.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.06%	16.35%	+1.71%

VLU vs. VYM - Expense Ratio Comparison

VLU has a 0.12% 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

VLU vs. VYM - Dividend Comparison

VLU's dividend yield for the trailing twelve months is around 2.05%, less than VYM's 2.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VLU SPDR S&P 1500 Value Tilt ETF	2.05%	1.82%	2.00%	2.02%	2.16%	1.86%	1.98%	2.19%	2.57%	1.96%	2.14%	6.37%
VYM Vanguard High Dividend Yield ETF	2.29%	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 VLU and VYM in my portfolio?

With a correlation of 0.91, VLU 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, VLU or VYM?

VYM has higher volatility (3.02%) compared to VLU (2.94%). In terms of maximum drawdown, VLU dropped -37.39% vs VYM's -56.98%.

Which ETF is better, VLU or VYM?

On 10-year performance, VLU leads with 14.21% vs 12.00% for VYM. On fees, VYM is cheaper at 0.04% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VLU or VYM?

Over the 10-year period, VLU has performed better with a 14.21% return vs 12.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VLU or VYM?

VYM is cheaper with a 0.04% expense ratio, compared with 0.12% for VLU.

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

VYM has the higher dividend yield at 2.29%, compared with 2.05% for VLU.

What is the main difference between VLU and VYM?

VLU is categorized as Large Cap Value Equities, while VYM is Dividend. VLU tracks S&P 1500 Low Valuation Tilt Index, while VYM tracks FTSE High Dividend Yield Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.12% for VLU and 0.04% for VYM.

Which has better risk-adjusted returns?

VLU currently has the higher Sharpe Ratio (2.63 vs 2.44), 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.