GVI vs VYM
iShares Intermediate Government/Credit Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. GVI offers more diversification with 2165 holdings.
Side-by-Side Comparison
| Metric | GVI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.04% | |
| AUM | $3.8B | $79.0B | |
| Dividend Yield | 3.61% | 2.86% | |
| Holdings | 6,117 | 568 | |
| YTD Return | -1.63% | +16.78% | |
| 1Y Return | -0.14% | +24.43% | |
| 3Y Return (annualized) | +3.82% | +18.60% | |
| 5Y Return (annualized) | +0.48% | +12.30% | |
| Volatility (annualized) | 25.2% | 14.6% | |
| Max Drawdown | -39.1% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | Nov 10, 2006 |
GVI vs VYM Performance
iShares Intermediate Government/Credit Bond ETF (GVI) 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 GVI returned -0.14% while VYM returned +24.43%. Year to date, GVI is down 1.63% versus a gain of 16.78% for VYM.
Over three years, GVI compounded at +3.82% per year against +18.60% for VYM; over five years the annualized figures are +0.48% and +12.30% respectively. Across the full 20-year window we track, VYM has the edge at +7.11% annualized vs +2.76%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GVI has been the more volatile fund, with annualized monthly volatility of 25.2% 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 -39.1% for GVI 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 0.02. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GVI charges 0.20% per year while VYM charges 0.04%. On a $10,000 position that is $20 vs $4 annually, a gap of $16 per year that compounds over a long holding period. On income, GVI currently yields 3.61% against 2.86% for VYM.
Holdings Overlap
GVI and VYM share 3 holdings out of 2720 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, GVI or VYM?
GVI has an expense ratio of 0.20% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, GVI or VYM?
Over the past year GVI returned -0.14% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), GVI annualized +2.76% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, GVI or VYM?
GVI has been the more volatile fund at 25.2% annualized versus 14.6% for VYM. Worst drawdown: GVI -39.1% vs VYM -58.8%.
Should I hold both GVI and VYM?
GVI and VYM have a monthly-return correlation of 0.02, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GVI and VYM?
GVI and VYM share 3 common holdings with a 0.0% weight overlap. Combined, they hold 2720 unique securities.
Which pays a higher dividend, GVI or VYM?
GVI yields 3.61% while VYM yields 2.86%, so GVI currently pays the higher dividend yield.
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