VYM vs ZSEP
Vanguard High Dividend Yield ETF vs Innovator Equity Defined Protection ETF - 1 Yr September
Which is better, VYM or ZSEP?
Large Cap Value against Option Writing.
VYM has a lower expense ratio. VYM led over 1Y 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 | ZSEP |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.79% |
| AUM | $78.9B | $231M |
| Dividend Yield | 2.37% | 0.00% |
| Holdings | 608 | 20 |
| YTD Return | +11.83%Best | +4.19% |
| 1Y Return | +15.96%Best | +5.45% |
| 3Y Return (annualized) | +18.60% | - |
| 5Y Return (annualized) | +11.51% | - |
| Volatility (annualized) | 11.0% | 2.6%Best |
| Max Drawdown | -14.5% | -4.0%Best |
| $10,000 over 2.1 years | $13,372Best | $11,369 |
| Fund Family | Vanguard (US) | Innovator ETFs Trust |
| Category | Equity | Alternative |
| Style | Large Cap Value | Option Writing |
| Inception | Nov 10, 2006 | Aug 31, 2024 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2.1 years row, are measured over the window both funds cover: Sep 3, 2024 to Oct 14, 2026 (2.1 years).
VYM vs ZSEP 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 2.1 years both funds cover.
VYM vs ZSEP Performance
Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US) and Innovator Equity Defined Protection ETF - 1 Yr September (ZSEP) is an ETF from Innovator ETFs Trust. Over the past year VYM returned +15.96% while ZSEP returned +5.45%. Year to date, VYM is up 11.83% versus a gain of 4.19% for ZSEP.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 11.0% compared with 2.6% for ZSEP. 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 -14.5% for VYM and -4.0% for ZSEP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VYM charges 0.04% per year while ZSEP charges 0.79%. On a $10,000 position that is $4 vs $79 annually, a gap of $75 per year that compounds over a long holding period. On income, VYM currently yields 2.37% against 0.00% for ZSEP.
Holdings Overlap
We hold position weights for 602 holdings in VYM and 1 in ZSEP, totalling 100.0% and 98.7% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 602 positions we hold weights for in VYM and 1 in ZSEP, against full books of 608 and 20.
You are not choosing between two funds in isolation.
Whichever of VYM and ZSEP 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 ZSEP?
VYM has an expense ratio of 0.04% while ZSEP charges 0.79%. VYM is the cheaper option, by $75 a year on a $10,000 investment.
Which performed better, VYM or ZSEP?
Over the past year VYM returned +15.96% vs +5.45% for ZSEP, so VYM leads on 1-year performance. Over the longest common window we track (2 years), VYM annualized +14.84% vs +6.30% for ZSEP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VYM or ZSEP?
VYM has been the more volatile fund at 11.0% annualized versus 2.6% for ZSEP. Worst drawdown: VYM -14.5% vs ZSEP -4.0%.
Should I hold both VYM and ZSEP?
VYM and ZSEP have a monthly-return correlation of 0.72, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VYM or ZSEP?
VYM yields 2.37% while ZSEP yields 0.00%, so VYM currently pays the higher dividend yield.
Is ZSEP better than VYM?
VYM has a lower expense ratio. VYM led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.