GTOC vs VYM
Invesco Core Fixed Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | GTOC | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.26% | 0.04% | |
| AUM | $347M | $79.0B | |
| Dividend Yield | 3.61% | 2.86% | |
| Holdings | 972 | 568 | |
| YTD Return | -2.23% | +16.78% | |
| 1Y Return | -0.51% | +24.43% | |
| 3Y Return (annualized) | - | +18.60% | |
| 5Y Return (annualized) | - | +12.30% | |
| Volatility (annualized) | 3.7% | 14.6% | |
| Max Drawdown | -4.1% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 23, 2025 | Nov 10, 2006 |
GTOC vs VYM Performance
Invesco Core Fixed Income ETF (GTOC) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year GTOC returned -0.51% while VYM returned +24.43%. Year to date, GTOC is down 2.23% versus a gain of 16.78% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.7% for GTOC. 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 -4.1% for GTOC 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GTOC charges 0.26% per year while VYM charges 0.04%. On a $10,000 position that is $26 vs $4 annually, a gap of $22 per year that compounds over a long holding period. On income, GTOC currently yields 3.61% against 2.86% for VYM.
Holdings Overlap
GTOC and VYM share 11 holdings out of 767 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GTOC or VYM?
GTOC has an expense ratio of 0.26% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, GTOC or VYM?
Over the past year GTOC returned -0.51% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), GTOC annualized +0.66% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, GTOC or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.7% for GTOC. Worst drawdown: GTOC -4.1% vs VYM -58.8%.
Should I hold both GTOC and VYM?
GTOC and VYM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GTOC and VYM?
GTOC and VYM share 11 common holdings with a 0.4% weight overlap. Combined, they hold 767 unique securities.
Which pays a higher dividend, GTOC or VYM?
GTOC yields 3.61% while VYM yields 2.86%, so GTOC currently pays the higher dividend yield.
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