VYM vs XMHQ
Vanguard High Dividend Yield ETF vs Invesco S&P MidCap Quality ETF
Which is better, VYM or XMHQ?
Large Cap Value against Mid Cap Blend.
VYM has a lower expense ratio. VYM led over 1Y, 3Y and 5Y, XMHQ over the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 30.6%.
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 | XMHQ |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.25% |
| AUM | $78.9B | $5.3B |
| Dividend Yield | 2.37% | 0.55% |
| Holdings | 608 | 167 |
| YTD Return | +11.83%Best | +9.97% |
| 1Y Return | +15.96%Best | +9.22% |
| 3Y Return (annualized) | +18.60%Best | +14.55% |
| 5Y Return (annualized) | +11.51%Best | +9.59% |
| Volatility (annualized) | 14.6%Best | 17.6% |
| Max Drawdown | -58.8% | -58.4%Best |
| $10,000 over 5 years | $17,241Best | $15,807 |
| Top 10 Weight | 25.8%Best | 30.6% |
| Fund Family | Vanguard (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Blend |
| Inception | Nov 10, 2006 | Dec 1, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Dec 1, 2006 to Oct 14, 2026 (19.9 years).
VYM vs XMHQ 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 XMHQ Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and Invesco S&P MidCap Quality ETF (XMHQ) is an ETF from Invesco (US). Over the past year VYM returned +15.96% while XMHQ returned +9.22%. Year to date, VYM is up 11.83% versus a gain of 9.97% for XMHQ.
Over three years, VYM compounded at +18.60% per year against +14.55% for XMHQ; over five years the annualized figures are +11.51% and +9.59% respectively. Across the full 20-year window we track, XMHQ has the edge at +8.42% annualized vs +6.84%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XMHQ has been the more volatile fund, with annualized monthly volatility of 17.6% 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 -58.4% for XMHQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while XMHQ charges 0.25%. On a $10,000 position that is $4 vs $25 annually, a gap of $21 per year that compounds over a long holding period. On income, VYM currently yields 2.37% against 0.55% for XMHQ.
Holdings Overlap
0.8% of VYM's money is in holdings XMHQ also owns. 26.9% of XMHQ's money is in holdings VYM also owns.
XMHQ and VYM share little of their money.
30 positions in common, counted across the 602 positions we hold weights for in VYM and 79 in XMHQ, against full books of 608 and 167.
What only one of them owns
Our book lists 47 positions for XMHQ that do not appear in our book for VYM (65.1% of the fund), and 543 for VYM that do not appear in XMHQ (97.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VYM | Weight in XMHQ | Difference |
|---|---|---|---|
| EVREvercore, Inc. Class A | 0.04% | 2.03% | 1.99% |
| SEICSei Investments Co. | 0.05% | 1.66% | 1.61% |
| TTCToro Co/the | 0.04% | 1.44% | 1.40% |
| BAHBooz Allen Hamilton Holding Corp. | 0.04% | 1.33% | 1.29% |
| PRIPrimerica Inc (pri) | 0.04% | 1.32% | 1.28% |
| TXRHTexas Roadhouse Inc | 0.05% | 1.30% | 1.25% |
| DCIDonaldson Co Inc | 0.04% | 1.27% | 1.23% |
| AFGAmerican Financial Group Inc/Oh | 0.04% | 1.18% | 1.14% |
| RRCRange Resources Corp | 0.04% | 1.14% | 1.10% |
| CHEChemed Corp | 0.03% | 1.15% | 1.12% |
26.9% of XMHQ is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VYM or XMHQ?
VYM has an expense ratio of 0.04% while XMHQ charges 0.25%. VYM is the cheaper option, by $21 a year on a $10,000 investment.
Which performed better, VYM or XMHQ?
Over the past year VYM returned +15.96% vs +9.22% for XMHQ, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VYM annualized +6.84% vs +8.42% for XMHQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XMHQ?
XMHQ has been the more volatile fund at 17.6% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XMHQ -58.4%.
Should I hold both VYM and XMHQ?
VYM and XMHQ have a monthly-return correlation of 0.86, 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 XMHQ?
26.9% of XMHQ's money is in holdings VYM also owns. 26.9% of XMHQ's is in holdings VYM also owns. They hold 30 positions in common, counted across the 602 positions we hold weights for in VYM and 79 in XMHQ.
Which pays a higher dividend, VYM or XMHQ?
VYM yields 2.37% while XMHQ yields 0.55%, so VYM currently pays the higher dividend yield.
Is XMHQ better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y and 5Y, XMHQ over the full window. VYM is less concentrated, with 25.8% of the fund in its ten largest positions against 30.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.