GTO vs VYM
Invesco Total Return Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. GTO offers more diversification with 1,904 holdings.
Side-by-Side Comparison
| Metric | GTO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $2.5B | $81.6B | |
| Dividend Yield | 4.90% | 2.24% | |
| Holdings | 1,904 | 616 | |
| YTD Return | +0.34% | +14.66% | |
| 1Y Return | +3.22% | +22.16% | |
| 3Y Return (annualized) | +5.41% | +18.72% | |
| 5Y Return (annualized) | -0.29% | +12.18% | |
| Volatility (annualized) | 5.7% | 14.6% | |
| Max Drawdown | -21.1% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 10, 2016 | Nov 10, 2006 |
GTO vs VYM Performance
Invesco Total Return Bond ETF (GTO) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year GTO returned +3.22% while VYM returned +22.16%. Year to date, GTO is up 0.34% versus a gain of 14.66% for VYM.
Over three years, GTO compounded at +5.41% per year against +18.72% for VYM; over five years the annualized figures are -0.29% and +12.18% respectively. Across the full 11-year window we track, VYM has the edge at +7.01% annualized vs +1.26%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 5.7% for GTO. 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 -21.1% for GTO 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GTO charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, GTO currently yields 4.90% against 2.24% for VYM.
Holdings Overlap
GTO and VYM share 20 holdings out of 1232 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GTO or VYM?
GTO has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, GTO or VYM?
Over the past year GTO returned +3.22% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (11 years), GTO annualized +1.26% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, GTO or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.7% for GTO. Worst drawdown: GTO -21.1% vs VYM -58.8%.
Should I hold both GTO and VYM?
GTO and VYM have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GTO and VYM?
GTO and VYM share 20 common holdings with a 0.7% weight overlap. Combined, they hold 1232 unique securities.
Which pays a higher dividend, GTO or VYM?
GTO yields 4.90% while VYM yields 2.24%, so GTO currently pays the higher dividend yield.
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