VYM vs. MGV

Last updated Jun 4, 2026

VYM (Vanguard High Dividend Yield ETF) and MGV (Vanguard Mega Cap Value ETF) are both exchange-traded funds - VYM is a Dividend fund tracking the FTSE High Dividend Yield Index, while MGV is a Large Cap Value Equities fund tracking the CRSP US Mega Cap Value Index. Both are passively managed. Over the past 10 years, VYM returned 11.90%/yr vs 12.82%/yr for MGV. With a 0.97 correlation, they move nearly in lockstep. VYM charges 0.04%/yr vs 0.05%/yr for MGV.

Performance

VYM vs. MGV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard High Dividend Yield ETF (VYM) and Vanguard Mega Cap Value ETF (MGV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VYM achieves a 12.47% return, which is significantly lower than MGV's 13.14% return. Over the past 10 years, VYM has underperformed MGV with an annualized return of 11.90%, while MGV has yielded a comparatively higher 12.82% annualized return.

VYM

• 1D: -0.43%
• 1M: 3.38%
• YTD: 12.47%
• 6M: 12.01%
• 1Y: 26.16%
• 3Y*: 18.88%
• 5Y*: 11.48%
• 10Y*: 11.90%

MGV

• 1D: 0.08%
• 1M: 5.09%
• YTD: 13.14%
• 6M: 13.88%
• 1Y: 26.98%
• 3Y*: 18.87%
• 5Y*: 11.92%
• 10Y*: 12.82%

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

VYM vs. MGV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VYM Vanguard High Dividend Yield ETF	12.47%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%
MGV Vanguard Mega Cap Value ETF	13.14%	15.45%	16.94%	9.16%	-1.22%	25.93%	2.50%	25.54%	-4.13%	16.85%

Correlation

The correlation between VYM and MGV is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Dec 28, 2007	0.97

The correlation between VYM and MGV has been stable across timeframes, ranging from 0.92 to 0.98 - a consistent structural relationship.

VYM vs. MGV - Sectors Allocation Comparison

Sectors	VYM	MGV
Financial Services	20.5%	23.9%
Technology	17.7%	14.2%
Healthcare	12.2%	16.6%
Industrials	12.1%	13.7%
Energy	9.8%	6.6%
Consumer Defensive	8.1%	11.9%
Consumer Cyclical	6.7%	3.7%
Utilities	5.7%	2.6%
Communication Services	3.5%	3.4%
Basic Materials	3.5%	2.4%
Real Estate	0.0%	1.2%

Return for Risk

VYM vs. MGV — Risk / Return Rank

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

VYM

VYM Risk / Return Rank: 77
VYM Sharpe Ratio Rank: 77
VYM Sortino Ratio Rank: 80
VYM Omega Ratio Rank: 76
VYM Calmar Ratio Rank: 76
VYM Martin Ratio Rank: 75

MGV

MGV Risk / Return Rank: 82
MGV Sharpe Ratio Rank: 83
MGV Sortino Ratio Rank: 85
MGV Omega Ratio Rank: 81
MGV Calmar Ratio Rank: 80
MGV Martin Ratio Rank: 80

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.

VYM vs. MGV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) and Vanguard Mega Cap Value ETF (MGV). 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.

	VYM	MGV	Difference
Sharpe ratio: Return per unit of total volatility	2.56	2.76	-0.20
Sortino ratio: Return per unit of downside risk	3.65	3.93	-0.28
Omega ratio: Gain probability vs. loss probability	1.46	1.50	-0.03
Calmar ratio: Return relative to maximum drawdown	3.93	4.22	-0.30
Martin ratio: Return relative to average drawdown	14.76	16.07	-1.31
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VYM vs. MGV - Sharpe Ratio Comparison

The current VYM Sharpe Ratio is 2.56, which is comparable to the MGV Sharpe Ratio of 2.76. The chart below compares the historical Sharpe Ratios of VYM and MGV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VYM	MGV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.56	2.76	-0.20
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.83	0.88	-0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.73	0.79	-0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.48	+0.03

Drawdowns

VYM vs. MGV - Drawdown Comparison

The maximum VYM drawdown since its inception was -56.98%, roughly equal to the maximum MGV drawdown of -55.87%. Use the drawdown chart below to compare losses from any high point for VYM and MGV.

Drawdown Indicators

	VYM	MGV	Difference
Max Drawdown Largest peak-to-trough decline	-56.98%	-55.87%	-1.11%
Max Drawdown (1Y) Largest decline over 1 year	-6.69%	-6.42%	-0.27%
Max Drawdown (3Y) Largest decline over 3 years	-14.46%	-13.18%	-1.28%
Max Drawdown (5Y) Largest decline over 5 years	-15.84%	-16.54%	+0.70%
Max Drawdown (10Y) Largest decline over 10 years	-35.21%	-35.41%	+0.20%
Current Drawdown Current decline from peak	-0.43%	0.00%	-0.43%
Average Drawdown Average peak-to-trough decline	-7.19%	-7.70%	+0.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.78%	1.68%	+0.10%

Volatility

VYM vs. MGV - Volatility Comparison

Vanguard High Dividend Yield ETF (VYM) has a higher volatility of 2.77% compared to Vanguard Mega Cap Value ETF (MGV) at 2.46%. This indicates that VYM's price experiences larger fluctuations and is considered to be riskier than MGV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VYM	MGV	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.77%	2.46%	+0.31%
Volatility (6M) Calculated over the trailing 6-month period	7.67%	7.46%	+0.21%
Volatility (1Y) Calculated over the trailing 1-year period	10.28%	9.83%	+0.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.96%	13.56%	+0.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.34%	16.33%	+0.01%

VYM vs. MGV - Expense Ratio Comparison

VYM has a 0.04% expense ratio, which is lower than MGV's 0.05% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VYM vs. MGV - Dividend Comparison

VYM's dividend yield for the trailing twelve months is around 2.19%, more than MGV's 1.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGV Vanguard Mega Cap Value ETF	1.88%	2.04%	2.31%	2.48%	2.45%	2.17%	2.47%	2.69%	2.65%	2.34%	2.53%	2.59%
VYM Vanguard High Dividend Yield ETF	2.19%	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 VYM and MGV in my portfolio?

With a correlation of 0.92, VYM and MGV 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, VYM or MGV?

VYM has higher volatility (2.77%) compared to MGV (2.46%). In terms of maximum drawdown, VYM dropped -56.98% vs MGV's -55.87%.

Which ETF is better, VYM or MGV?

On 10-year performance, MGV leads with 12.82% vs 11.90% for VYM. On fees, VYM is cheaper at 0.04% per year. On volatility, MGV 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, VYM or MGV?

Over the 10-year period, MGV has performed better with a 12.82% return vs 11.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VYM or MGV?

VYM is cheaper with a 0.04% expense ratio, compared with 0.05% for MGV.

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

VYM has the higher dividend yield at 2.19%, compared with 1.88% for MGV.

What is the main difference between VYM and MGV?

VYM is categorized as Dividend, while MGV is Large Cap Value Equities. VYM tracks FTSE High Dividend Yield Index, while MGV tracks CRSP US Mega Cap Value Index. Their fees differ too: 0.04% for VYM and 0.05% for MGV.

Which has better risk-adjusted returns?

MGV currently has the higher Sharpe Ratio (2.76 vs 2.56), 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.