IAGG vs VYM
iShares Core International Aggregate Bond ETF vs Vanguard High Dividend Yield ETF
Which is better, IAGG or VYM?
Long Term Mid Quality against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IAGG | VYM |
|---|---|---|
| Expense Ratio | 0.07% | 0.04%Best |
| AUM | $11.9B | $81.6B |
| Dividend Yield | 4.54% | 2.22% |
| Holdings | 8,021 | 613 |
| YTD Return | -0.98% | +11.47%Best |
| 1Y Return | -3.32% | +15.94%Best |
| 3Y Return (annualized) | +3.08% | +18.03%Best |
| 5Y Return (annualized) | -0.07% | +12.35%Best |
| Volatility (annualized) | 4.1%Best | 13.9% |
| Max Drawdown | -13.9%Best | -35.7% |
| $10,000 over 5 years | $9,965 | $17,901Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Value |
| Inception | Nov 10, 2015 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 12, 2015 to Sep 21, 2026 (10.9 years).
IAGG vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10.9 years both funds cover.
IAGG vs VYM Performance
iShares Core International Aggregate Bond ETF (IAGG) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year IAGG returned -3.32% while VYM returned +15.94%. Year to date, IAGG is down 0.98% versus a gain of 11.47% for VYM.
Over three years, IAGG compounded at +3.08% per year against +18.03% for VYM; over five years the annualized figures are -0.07% and +12.35% respectively. Across the full 11-year window we track, VYM has the edge at +9.95% annualized vs +1.93%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.9% compared with 4.1% for IAGG. 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 -13.9% for IAGG and -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.31. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IAGG charges 0.07% per year while VYM charges 0.04%. On a $10,000 position that is $7 vs $4 annually, a gap of $3 per year that compounds over a long holding period. On income, IAGG currently yields 4.54% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 675 holdings in IAGG and 557 in VYM, totalling 4.5% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 675 positions we hold weights for in IAGG and 557 in VYM, against full books of 8,021 and 613.
You are not choosing between two funds in isolation.
Whichever of IAGG and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IAGG or VYM?
IAGG has an expense ratio of 0.07% while VYM charges 0.04%. VYM is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, IAGG or VYM?
Over the past year IAGG returned -3.32% vs +15.94% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (11 years), IAGG annualized +1.93% vs +9.95% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IAGG or VYM?
VYM has been the more volatile fund at 13.9% annualized versus 4.1% for IAGG. Worst drawdown: IAGG -13.9% vs VYM -35.7%.
Should I hold both IAGG and VYM?
IAGG and VYM have a monthly-return correlation of 0.31, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IAGG or VYM?
IAGG yields 4.54% while VYM yields 2.22%, so IAGG currently pays the higher dividend yield.
Is VYM better than IAGG?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.