IBBQ vs VYM
Invesco Nasdaq Biotechnology ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IBBQ delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | IBBQ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.04% | |
| AUM | $76M | $79.0B | |
| Dividend Yield | 0.79% | 2.86% | |
| Holdings | 261 | 568 | |
| YTD Return | +19.81% | +16.78% | |
| 1Y Return | +47.56% | +24.43% | |
| 3Y Return (annualized) | +19.24% | +18.60% | |
| 5Y Return (annualized) | +6.01% | +12.30% | |
| Volatility (annualized) | 17.0% | 14.6% | |
| Max Drawdown | -37.9% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 11, 2021 | Nov 10, 2006 |
IBBQ vs VYM Performance
Invesco Nasdaq Biotechnology ETF (IBBQ) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IBBQ returned +47.56% while VYM returned +24.43%. Year to date, IBBQ is up 19.81% versus a gain of 16.78% for VYM.
Over three years, IBBQ compounded at +19.24% per year against +18.60% for VYM; over five years the annualized figures are +6.01% and +12.30% respectively. Across the full 5-year window we track, VYM has the edge at +7.11% annualized vs +6.55%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IBBQ has been the more volatile fund, with annualized monthly volatility of 17.0% 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 -37.9% for IBBQ 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBBQ charges 0.19% per year while VYM charges 0.04%. On a $10,000 position that is $19 vs $4 annually, a gap of $15 per year that compounds over a long holding period. On income, IBBQ currently yields 0.79% against 2.86% for VYM.
Holdings Overlap
IBBQ and VYM share 3 holdings out of 807 unique holdings combined, representing a 1.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IBBQ or VYM?
IBBQ has an expense ratio of 0.19% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, IBBQ or VYM?
Over the past year IBBQ returned +47.56% vs +24.43% for VYM, so IBBQ leads on 1-year performance. Over the longest common window we track (5 years), IBBQ annualized +6.55% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, IBBQ or VYM?
IBBQ has been the more volatile fund at 17.0% annualized versus 14.6% for VYM. Worst drawdown: IBBQ -37.9% vs VYM -58.8%.
Should I hold both IBBQ and VYM?
IBBQ and VYM have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBBQ and VYM?
IBBQ and VYM share 3 common holdings with a 1.7% weight overlap. Combined, they hold 807 unique securities.
Which pays a higher dividend, IBBQ or VYM?
IBBQ yields 0.79% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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