GTOQ vs VYM
Invesco High Yield Systematic Bond 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 616 holdings.
Side-by-Side Comparison
| Metric | GTOQ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.04% | |
| AUM | $182M | $81.6B | |
| Dividend Yield | 6.88% | 2.24% | |
| Holdings | 489 | 616 | |
| YTD Return | +2.82% | +15.34% | |
| 1Y Return | +5.79% | +23.24% | |
| 3Y Return (annualized) | +8.79% | +19.22% | |
| 5Y Return (annualized) | +3.98% | +12.21% | |
| Volatility (annualized) | 6.7% | 14.6% | |
| Max Drawdown | -15.7% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 2, 2020 | Nov 10, 2006 |
GTOQ vs VYM Performance
Invesco High Yield Systematic Bond ETF (GTOQ) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year GTOQ returned +5.79% while VYM returned +23.24%. Year to date, GTOQ is up 2.82% versus a gain of 15.34% for VYM.
Over three years, GTOQ compounded at +8.79% per year against +19.22% for VYM; over five years the annualized figures are +3.98% and +12.21% respectively. Across the full 6-year window we track, VYM has the edge at +7.04% annualized vs +4.24%. 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 6.7% for GTOQ. 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 -15.7% for GTOQ 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
GTOQ charges 0.39% per year while VYM charges 0.04%. On a $10,000 position that is $39 vs $4 annually, a gap of $35 per year that compounds over a long holding period. On income, GTOQ currently yields 6.88% against 2.24% for VYM.
Holdings Overlap
GTOQ and VYM share 1 holdings out of 1011 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in GTOQ | Weight in VYM | Difference |
|---|---|---|---|
| NAVI | 0.11% | 0.00% | 0.11% |
Frequently Asked Questions
Which is cheaper, GTOQ or VYM?
GTOQ has an expense ratio of 0.39% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, GTOQ or VYM?
Over the past year GTOQ returned +5.79% vs +23.24% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), GTOQ annualized +4.24% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, GTOQ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.7% for GTOQ. Worst drawdown: GTOQ -15.7% vs VYM -58.8%.
Should I hold both GTOQ and VYM?
GTOQ and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GTOQ and VYM?
GTOQ and VYM share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1011 unique securities.
Which pays a higher dividend, GTOQ or VYM?
GTOQ yields 6.88% while VYM yields 2.24%, so GTOQ currently pays the higher dividend yield.
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