VYM vs XSW
Vanguard High Dividend Yield ETF vs State Street SPDR S&P Software & Services ETF
Which is better, VYM or XSW?
Large Cap Value against Mid Cap Growth.
VYM has a lower expense ratio. VYM led over 1Y, 3Y and 5Y, XSW over the full window. XSW is less concentrated, with 11.2% of the fund in its ten largest positions against 25.8%.
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 | XSW |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.35% |
| AUM | $78.9B | $473M |
| Dividend Yield | 2.37% | 0.00% |
| Holdings | 608 | 133 |
| YTD Return | +11.83%Best | +7.71% |
| 1Y Return | +15.96%Best | -1.35% |
| 3Y Return (annualized) | +18.60%Best | +16.39% |
| 5Y Return (annualized) | +11.51%Best | +2.10% |
| Volatility (annualized) | 13.0%Best | 20.9% |
| Max Drawdown | -35.7%Best | -45.4% |
| $10,000 over 5 years | $17,241Best | $11,095 |
| Top 10 Weight | 25.8% | 11.2%Best |
| Fund Family | Vanguard (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Mid Cap Growth |
| Inception | Nov 10, 2006 | Sep 28, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2011 to Oct 14, 2026 (15 years).
VYM vs XSW 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 15 years both funds cover.
VYM vs XSW Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and State Street SPDR S&P Software & Services ETF (XSW) is an ETF from State Street Investment Management. Over the past year VYM returned +15.96% while XSW returned -1.35%. Year to date, VYM is up 11.83% versus a gain of 7.71% for XSW.
Over three years, VYM compounded at +18.60% per year against +16.39% for XSW; over five years the annualized figures are +11.51% and +2.10% respectively. Across the full 15-year window we track, XSW has the edge at +15.53% annualized vs +10.62%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSW has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 13.0% 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 -35.7% for VYM and -45.4% for XSW. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.62. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VYM charges 0.04% per year while XSW charges 0.35%. On a $10,000 position that is $4 vs $35 annually, a gap of $31 per year that compounds over a long holding period. On income, VYM currently yields 2.37% against 0.00% for XSW.
Holdings Overlap
2.6% of VYM's money is in holdings XSW also owns. 4.6% of XSW's money is in holdings VYM also owns.
XSW and VYM share little of their money.
7 positions in common, counted across the 602 positions we hold weights for in VYM and 132 in XSW, against full books of 608 and 133.
What only one of them owns
Measured across the 602 and 132 positions we hold weights for.
VYM holds 566 positions XSW does not, 95.3% of the fund.
Largest: AVGO 6.94%, JPM 3.83%, XOM 2.70%, JNJ 2.58%, ABBV 1.83%
Top Shared Holdings
| Stock | Weight in VYM | Weight in XSW | Difference |
|---|---|---|---|
| ORCLOracle Corp - Common | 1.03% | 0.48% | 0.55% |
| IBMInternational Business Machines Corp. | 0.89% | 0.58% | 0.31% |
| ACNAccenture Plc | 0.47% | 0.70% | 0.23% |
| GENGen Digital Inc | 0.07% | 0.80% | 0.73% |
| CTSHCognizant Technology Solutions Corp. Class A | 0.12% | 0.75% | 0.63% |
| DLBDOLBY LABORATORIES INC-CL A | 0.01% | 0.79% | 0.78% |
| YOUClear Secure Inc -Class A | 0.02% | 0.53% | 0.51% |
You are not choosing between two funds in isolation.
Whichever of VYM and XSW 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 XSW?
VYM has an expense ratio of 0.04% while XSW charges 0.35%. VYM is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, VYM or XSW?
Over the past year VYM returned +15.96% vs -1.35% for XSW, so VYM leads on 1-year performance. Over the longest common window we track (15 years), VYM annualized +10.62% vs +15.53% for XSW. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or XSW?
XSW has been the more volatile fund at 20.9% annualized versus 13.0% for VYM. Worst drawdown: VYM -35.7% vs XSW -45.4%.
Should I hold both VYM and XSW?
VYM and XSW have a monthly-return correlation of 0.62, 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 XSW?
4.6% of XSW's money is in holdings VYM also owns. 4.6% of XSW's is in holdings VYM also owns. They hold 7 positions in common, counted across the 602 positions we hold weights for in VYM and 132 in XSW.
Which pays a higher dividend, VYM or XSW?
VYM yields 2.37% while XSW yields 0.00%, so VYM currently pays the higher dividend yield.
Is XSW better than VYM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y and 5Y, XSW over the full window. XSW is less concentrated, with 11.2% of the fund in its ten largest positions against 25.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.