VYM vs WEA
Vanguard High Dividend Yield ETF vs Western Asset Premier Bond Fund
Which is better, VYM or WEA?
Large Cap Value against Long Term Low Quality.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VYM | WEA |
|---|---|---|
| Expense Ratio | 0.04%Best | 1.22% |
| AUM | $78.9B | $126M |
| Dividend Yield | 2.37% | 7.89% |
| Holdings | 608 | 386 |
| YTD Return | +11.83%Best | -7.78% |
| 1Y Return | +15.96%Best | -5.07% |
| 3Y Return (annualized) | +18.60%Best | +7.42% |
| 5Y Return (annualized) | +11.51%Best | -0.19% |
| Volatility (annualized) | 14.6%Best | 16.5% |
| Max Drawdown | -58.8%Best | -64.1% |
| $10,000 over 5 years | $17,241Best | $9,905 |
| Fund Family | Vanguard (US) | Franklin Templeton Investments (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Value | Long Term Low Quality |
| Inception | Nov 10, 2006 | Mar 28, 2002 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Oct 14, 2026 (19.9 years).
VYM vs WEA growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.9 years both funds cover.
VYM vs WEA Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and Western Asset Premier Bond Fund (WEA) is an ETF from Franklin Templeton Investments (US). Over the past year VYM returned +15.96% while WEA returned -5.07%. Year to date, VYM is up 11.83% versus a loss of 7.78% for WEA.
Over three years, VYM compounded at +18.60% per year against +7.42% for WEA; over five years the annualized figures are +11.51% and -0.19% respectively. Across the full 20-year window we track, VYM has the edge at +6.82% annualized vs -0.33%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WEA has been the more volatile fund, with annualized monthly volatility of 16.5% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -58.8% for VYM and -64.1% for WEA. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.46. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VYM charges 0.04% per year while WEA charges 1.22%. On a $10,000 position that is $4 vs $122 annually, a gap of $118 per year that compounds over a long holding period. On income, VYM currently yields 2.37% against 7.89% for WEA.
Holdings Overlap
At least 2.0% of VYM's money is in holdings WEA also owns.
Stated as a floor: for WEA, our book for it covers 68.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VYM and WEA share little of their money.
2 positions in common, counted across the 602 positions we hold weights for in VYM and 224 in WEA, against full books of 608 and 386.
You are not choosing between two funds in isolation.
Whichever of VYM and WEA you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VYM or WEA?
VYM has an expense ratio of 0.04% while WEA charges 1.22%. VYM is the cheaper option, by $118 a year on a $10,000 investment.
Which performed better, VYM or WEA?
Over the past year VYM returned +15.96% vs -5.07% for WEA, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.82% vs -0.33% for WEA. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or WEA?
WEA has been the more volatile fund at 16.5% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs WEA -64.1%.
Should I hold both VYM and WEA?
VYM and WEA have a monthly-return correlation of 0.46, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VYM and WEA?
At least 2.0% of VYM's money is in holdings WEA also owns. Our book for WEA is partial, so the real figure is this or higher. They hold 2 positions in common, counted across the 602 positions we hold weights for in VYM and 224 in WEA.
Which pays a higher dividend, VYM or WEA?
VYM yields 2.37% while WEA yields 7.89%, so WEA currently pays the higher dividend yield.
Is WEA better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.