VYM vs. SPY

Last updated Jun 4, 2026

VYM (Vanguard High Dividend Yield ETF) and SPY (State Street SPDR S&P 500 ETF) are both exchange-traded funds - VYM is a Dividend fund tracking the FTSE High Dividend Yield Index, while SPY is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, VYM returned 11.90%/yr vs 15.49%/yr for SPY. Their correlation of 0.89 suggests significant overlap in exposure. VYM charges 0.04%/yr vs 0.09%/yr for SPY.

Performance

VYM vs. SPY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard High Dividend Yield ETF (VYM) and State Street SPDR S&P 500 ETF (SPY). 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 higher than SPY's 10.91% return. Over the past 10 years, VYM has underperformed SPY with an annualized return of 11.90%, while SPY has yielded a comparatively higher 15.49% 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%

SPY

• 1D: -0.70%
• 1M: 5.05%
• YTD: 10.91%
• 6M: 10.91%
• 1Y: 27.98%
• 3Y*: 22.35%
• 5Y*: 13.83%
• 10Y*: 15.49%

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

VYM vs. SPY - 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%
SPY State Street SPDR S&P 500 ETF	10.91%	17.72%	24.89%	26.18%	-18.18%	28.73%	18.33%	31.22%	-4.57%	21.71%

Correlation

The correlation between VYM and SPY is 0.71, 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	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Nov 17, 2006	0.89

The correlation between VYM and SPY shifts across timeframes, from 0.71 (1 year) to 0.89 (all time), reflecting how their relationship changes across market environments.

VYM vs. SPY - Sectors Allocation Comparison

Sectors	VYM	SPY
Financial Services	20.5%	11.8%
Technology	17.7%	35.9%
Healthcare	12.2%	8.4%
Industrials	12.1%	7.8%
Energy	9.8%	3.6%
Consumer Defensive	8.1%	4.8%
Consumer Cyclical	6.7%	10.3%
Utilities	5.7%	2.4%
Communication Services	3.5%	11.3%
Basic Materials	3.5%	1.8%
Real Estate	0.0%	1.9%

Return for Risk

VYM vs. SPY — 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

SPY

SPY Risk / Return Rank: 70
SPY Sharpe Ratio Rank: 71
SPY Sortino Ratio Rank: 69
SPY Omega Ratio Rank: 70
SPY Calmar Ratio Rank: 62
SPY Martin Ratio Rank: 75

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. SPY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) and State Street SPDR S&P 500 ETF (SPY). 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	SPY	Difference
Sharpe ratio: Return per unit of total volatility	2.56	2.38	+0.18
Sortino ratio: Return per unit of downside risk	3.65	3.24	+0.41
Omega ratio: Gain probability vs. loss probability	1.46	1.43	+0.03
Calmar ratio: Return relative to maximum drawdown	3.93	3.16	+0.76
Martin ratio: Return relative to average drawdown	14.76	14.72	+0.04
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. SPY - Sharpe Ratio Comparison

The current VYM Sharpe Ratio is 2.56, which is comparable to the SPY Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of VYM and SPY, 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	SPY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.56	2.38	+0.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.83	0.82	+0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.73	0.87	-0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.59	-0.08

Drawdowns

VYM vs. SPY - Drawdown Comparison

The maximum VYM drawdown since its inception was -56.98%, roughly equal to the maximum SPY drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VYM and SPY.

Drawdown Indicators

	VYM	SPY	Difference
Max Drawdown Largest peak-to-trough decline	-56.98%	-55.19%	-1.79%
Max Drawdown (1Y) Largest decline over 1 year	-6.69%	-8.88%	+2.19%
Max Drawdown (3Y) Largest decline over 3 years	-14.46%	-18.76%	+4.30%
Max Drawdown (5Y) Largest decline over 5 years	-15.84%	-24.50%	+8.66%
Max Drawdown (10Y) Largest decline over 10 years	-35.21%	-33.72%	-1.49%
Current Drawdown Current decline from peak	-0.43%	-0.70%	+0.27%
Average Drawdown Average peak-to-trough decline	-7.19%	-9.05%	+1.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.78%	1.91%	-0.13%

Volatility

VYM vs. SPY - Volatility Comparison

Vanguard High Dividend Yield ETF (VYM) and State Street SPDR S&P 500 ETF (SPY) have volatilities of 2.77% and 2.84%, 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

	VYM	SPY	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.77%	2.84%	-0.07%
Volatility (6M) Calculated over the trailing 6-month period	7.67%	8.90%	-1.23%
Volatility (1Y) Calculated over the trailing 1-year period	10.28%	11.83%	-1.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.96%	17.05%	-3.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.34%	17.94%	-1.60%

VYM vs. SPY - Expense Ratio Comparison

VYM has a 0.04% expense ratio, which is lower than SPY's 0.09% 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. SPY - Dividend Comparison

VYM's dividend yield for the trailing twelve months is around 2.19%, more than SPY's 0.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPY State Street SPDR S&P 500 ETF	0.98%	1.07%	1.21%	1.40%	1.65%	1.20%	1.52%	1.75%	2.04%	1.80%	2.03%	2.06%
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 SPY in my portfolio?

VYM and SPY have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VYM or SPY?

SPY has higher volatility (2.84%) compared to VYM (2.77%). In terms of maximum drawdown, VYM dropped -56.98% vs SPY's -55.19%.

Which ETF is better, VYM or SPY?

On 10-year performance, SPY leads with 15.49% vs 11.90% 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, VYM or SPY?

Over the 10-year period, SPY has performed better with a 15.49% 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 SPY?

VYM is cheaper with a 0.04% expense ratio, compared with 0.09% for SPY.

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

VYM has the higher dividend yield at 2.19%, compared with 0.98% for SPY.

What is the main difference between VYM and SPY?

VYM is categorized as Dividend, while SPY is S&P 500. VYM tracks FTSE High Dividend Yield Index, while SPY tracks S&P 500 Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.04% for VYM and 0.09% for SPY.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.56 vs 2.38), 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.