GOVZ vs VYM
iShares 25+ Year Treasury STRIPS Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. GOVZ delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | GOVZ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.04% | |
| AUM | $268M | $79.0B | |
| Dividend Yield | 4.77% | 2.86% | |
| Holdings | 22 | 568 | |
| YTD Return | +264.90% | +16.78% | |
| 1Y Return | +262.49% | +24.43% | |
| 3Y Return (annualized) | +47.30% | +18.60% | |
| 5Y Return (annualized) | +12.64% | +12.30% | |
| Volatility (annualized) | 126.3% | 14.6% | |
| Max Drawdown | -59.6% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 22, 2020 | Nov 10, 2006 |
GOVZ vs VYM Performance
iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year GOVZ returned +262.49% while VYM returned +24.43%. Year to date, GOVZ is up 264.90% versus a gain of 16.78% for VYM.
Over three years, GOVZ compounded at +47.30% per year against +18.60% for VYM; over five years the annualized figures are +12.64% and +12.30% respectively. Across the full 6-year window we track, GOVZ has the edge at +8.24% annualized vs +7.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GOVZ has been the more volatile fund, with annualized monthly volatility of 126.3% 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 -59.6% for GOVZ and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.06. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GOVZ charges 0.10% per year while VYM charges 0.04%. On a $10,000 position that is $10 vs $4 annually, a gap of $6 per year that compounds over a long holding period. On income, GOVZ currently yields 4.77% against 2.86% for VYM.
Holdings Overlap
GOVZ and VYM share 0 holdings out of 570 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GOVZ or VYM?
GOVZ has an expense ratio of 0.10% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, GOVZ or VYM?
Over the past year GOVZ returned +262.49% vs +24.43% for VYM, so GOVZ leads on 1-year performance. Over the longest common window we track (6 years), GOVZ annualized +8.24% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, GOVZ or VYM?
GOVZ has been the more volatile fund at 126.3% annualized versus 14.6% for VYM. Worst drawdown: GOVZ -59.6% vs VYM -58.8%.
Should I hold both GOVZ and VYM?
GOVZ and VYM have a monthly-return correlation of 0.06, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GOVZ and VYM?
GOVZ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 570 unique securities.
Which pays a higher dividend, GOVZ or VYM?
GOVZ yields 4.77% while VYM yields 2.86%, so GOVZ currently pays the higher dividend yield.
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