VYM vs. VEIPX

Last updated Aug 5, 2026

VYM (Vanguard High Dividend Yield ETF) and VEIPX (Vanguard Equity Income Fund Investor Shares) are both Dividend funds from Vanguard. VYM is passively managed, while VEIPX is actively managed. Over the past 10 years, VYM returned 11.86%/yr vs 11.74%/yr for VEIPX. Their 0.98 correlation means they have historically moved very closely together. VYM charges 0.04%/yr vs 0.28%/yr for VEIPX.

Performance

VYM vs. VEIPX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard High Dividend Yield ETF (VYM) and Vanguard Equity Income Fund Investor Shares (VEIPX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VYM achieves a 16.57% return, which is significantly higher than VEIPX's 12.51% return. Both investments have delivered pretty close results over the past 10 years, with VYM having a 11.86% annualized return and VEIPX not far behind at 11.74%.

VYM

• 1D: 1.54%
• 1M: 3.65%
• 6M: 10.11%
• YTD: 16.57%
• 1Y: 25.99%
• 3Y*: 18.31%
• 5Y*: 12.56%
• 10Y*: 11.86%
• ALL TIME*: 9.48%

VEIPX

• 1D: 0.63%
• 1M: 2.56%
• 6M: 8.19%
• YTD: 12.51%
• 1Y: 22.56%
• 3Y*: 16.40%
• 5Y*: 11.77%
• 10Y*: 11.74%
• ALL TIME*: 10.39%

*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)
VEIPX Vanguard Equity Income Fund Investor Shares	$0.00	$0.00	$0.00
VYM Vanguard High Dividend Yield ETF	$218.18M	$204.80M	$205.80M

VYM vs. VEIPX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VYM Vanguard High Dividend Yield ETF	16.57%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%
VEIPX Vanguard Equity Income Fund Investor Shares	12.51%	17.14%	14.80%	7.66%	-0.16%	25.41%	2.97%	25.21%	-5.75%	17.60%

Correlation

The correlation between VYM and VEIPX is 0.95 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.95
Correlation (3Y) Balances recent behavior with more history.	0.97
Correlation (5Y) Shows whether the relationship held over a longer period.	0.98
Correlation (10Y) Provides a long-term view across more market conditions.	0.98
Correlation (All Time) Calculated using the full available price history since Nov 16, 2006	0.98

The correlation between VYM and VEIPX has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.

VYM vs. VEIPX - Sectors Allocation Comparison

Sectors	VYM	VEIPX
Financial Services	21.0%	19.8%
Technology	17.8%	14.1%
Healthcare	13.2%	14.8%
Industrials	12.6%	9.4%
Energy	8.6%	8.3%
Consumer Defensive	8.1%	9.4%
Consumer Cyclical	6.8%	5.8%
Utilities	5.7%	7.0%
Basic Materials	3.3%	3.6%
Communication Services	3.0%	2.9%
Real Estate	0.0%	2.5%

Return for Risk

VYM vs. VEIPX — Risk / Return Rank

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

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

VEIPX

VEIPX Risk / Return Rank: 90
VEIPX Sharpe Ratio Rank: 92
VEIPX Sortino Ratio Rank: 91
VEIPX Omega Ratio Rank: 87
VEIPX Calmar Ratio Rank: 88
VEIPX Martin Ratio Rank: 90

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.

VYM vs. VEIPX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) and Vanguard Equity Income Fund Investor Shares (VEIPX). 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.

	VYM	VEIPX	Difference
Sharpe ratio: Return per unit of total volatility	2.55	2.37	+0.18
Sortino ratio: Return per unit of downside risk	3.66	3.39	+0.27
Omega ratio: Gain probability vs. loss probability	1.47	1.44	+0.03
Calmar ratio: Return relative to maximum drawdown	3.90	3.37	+0.53
Martin ratio: Return relative to average drawdown	14.66	12.72	+1.93

VYM vs. VEIPX - Sharpe Ratio Comparison

The current VYM Sharpe Ratio is 2.55, which is comparable to the VEIPX Sharpe Ratio of 2.37. The chart below compares the historical Sharpe Ratios of VYM and VEIPX, 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

VYM vs. VEIPX - Drawdown Comparison

The maximum VYM drawdown since its inception was -56.98%, which is greater than VEIPX's maximum drawdown of -54.12%. Use the drawdown chart below to compare losses from any high point for VYM and VEIPX.

Drawdown Indicators

	VYM	VEIPX	Difference
Max Drawdown Largest peak-to-trough decline	-56.98%	-54.12%	-2.86%
Max Drawdown (1Y) Largest decline over 1 year	-6.69%	-7.15%	+0.46%
Max Drawdown (3Y) Largest decline over 3 years	-14.46%	-13.39%	-1.07%
Max Drawdown (5Y) Largest decline over 5 years	-15.84%	-15.16%	-0.68%
Max Drawdown (10Y) Largest decline over 10 years	-35.21%	-35.26%	+0.05%
Current Drawdown Current decline from peak	0.00%	-0.22%	+0.22%
Average Drawdown Average peak-to-trough decline	-7.14%	-5.48%	-1.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.78%	1.89%	-0.11%

Volatility

VYM vs. VEIPX - Volatility Comparison

Vanguard High Dividend Yield ETF (VYM) has a higher volatility of 2.79% compared to Vanguard Equity Income Fund Investor Shares (VEIPX) at 2.40%. This indicates that VYM's price experiences larger fluctuations and is considered to be riskier than VEIPX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VYM	VEIPX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.79%	2.40%	+0.39%
Volatility (6M) Calculated over the trailing 6-month period	7.55%	7.38%	+0.17%
Volatility (1Y) Calculated over the trailing 1-year period	10.28%	10.16%	+0.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.88%	13.84%	+0.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.31%	16.25%	+0.06%

VYM vs. VEIPX - Expense Ratio Comparison

VYM has a 0.04% expense ratio, which is lower than VEIPX's 0.28% expense ratio.

Dividends

VYM vs. VEIPX - Dividend Comparison

VYM's dividend yield for the trailing twelve months is around 2.20%, less than VEIPX's 9.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VEIPX Vanguard Equity Income Fund Investor Shares	9.77%	10.94%	9.74%	7.87%	8.69%	7.62%	2.77%	4.36%	10.87%	2.98%	3.78%	6.39%
VYM Vanguard High Dividend Yield ETF	2.20%	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 VEIPX in my portfolio?

With a correlation of 0.95, VYM and VEIPX 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 VEIPX?

VYM has higher volatility (2.79%) compared to VEIPX (2.40%). In terms of maximum drawdown, VYM dropped -56.98% vs VEIPX's -54.12%.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.55 vs 2.37), 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.