VYM vs. SPYD
Compare and contrast key facts about Vanguard High Dividend Yield ETF (VYM) and SPDR Portfolio S&P 500 High Dividend ETF (SPYD).
VYM and SPYD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VYM is a passively managed fund by Vanguard that tracks the performance of the FTSE High Dividend Yield Index. It was launched on Nov 10, 2006. SPYD is a passively managed fund by State Street that tracks the performance of the S&P 500 High Dividend Index. It was launched on Oct 21, 2015. Both VYM and SPYD are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VYM or SPYD.
Key characteristics
| VYM | SPYD | |
|---|---|---|
| YTD Return | 4.49% | 1.70% |
| 1Y Return | 14.04% | 11.63% |
| 3Y Return (Ann) | 7.07% | 3.77% |
| 5Y Return (Ann) | 9.14% | 5.34% |
| Sharpe Ratio | 1.11 | 0.57 |
| Daily Std Dev | 10.84% | 15.93% |
| Max Drawdown | -56.98% | -46.42% |
| Current Drawdown | -4.13% | -4.82% |
Correlation
The correlation between VYM and SPYD is 0.89, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VYM vs. SPYD - Performance Comparison
In the year-to-date period, VYM achieves a 4.49% return, which is significantly higher than SPYD's 1.70% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VYM vs. SPYD - Expense Ratio Comparison
VYM has a 0.06% expense ratio, which is lower than SPYD's 0.07% 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%.
Risk-Adjusted Performance
VYM vs. SPYD - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) and SPDR Portfolio S&P 500 High Dividend ETF (SPYD). 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.
Dividends
VYM vs. SPYD - Dividend Comparison
VYM's dividend yield for the trailing twelve months is around 2.95%, less than SPYD's 4.59% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VYM Vanguard High Dividend Yield ETF | 2.95% | 3.12% | 3.01% | 2.76% | 3.18% | 3.03% | 3.40% | 2.80% | 2.91% | 3.22% | 2.78% | 2.81% |
SPYD SPDR Portfolio S&P 500 High Dividend ETF | 4.59% | 4.66% | 5.01% | 3.68% | 4.95% | 4.43% | 4.75% | 4.63% | 4.34% | 1.13% | 0.00% | 0.00% |
Drawdowns
VYM vs. SPYD - Drawdown Comparison
The maximum VYM drawdown since its inception was -56.98%, which is greater than SPYD's maximum drawdown of -46.42%. Use the drawdown chart below to compare losses from any high point for VYM and SPYD. For additional features, visit the drawdowns tool.
Volatility
VYM vs. SPYD - Volatility Comparison
The current volatility for Vanguard High Dividend Yield ETF (VYM) is 3.15%, while SPDR Portfolio S&P 500 High Dividend ETF (SPYD) has a volatility of 4.53%. This indicates that VYM experiences smaller price fluctuations and is considered to be less risky than SPYD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.