IFLN vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricIFLNVYMWinner
Expense Ratio0.23%0.04%
AUM$308M$79.0B
Dividend Yield5.85%2.86%
Holdings115568
YTD Return+1.22%+16.16%
1Y Return+4.79%+26.05%
3Y Return (annualized)+7.46%+18.43%
5Y Return (annualized)+3.62%+12.21%
Volatility (annualized)10.3%14.6%
Max Drawdown-48.8%-58.8%
Fund FamilyInvesco (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionNov 15, 2007Nov 10, 2006

IFLN vs VYM Performance

Invesco Bloomberg Enhanced Fallen Angels ETF (IFLN) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IFLN returned +4.79% while VYM returned +26.05%. Year to date, IFLN is up 1.22% versus a gain of 16.16% for VYM.

Over three years, IFLN compounded at +7.46% per year against +18.43% for VYM; over five years the annualized figures are +3.62% and +12.21% respectively. Across the full 19-year window we track, VYM has the edge at +7.09% annualized vs -0.35%. 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 10.3% for IFLN. 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 -48.8% for IFLN 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IFLN charges 0.23% per year while VYM charges 0.04%. On a $10,000 position that is $23 vs $4 annually, a gap of $19 per year that compounds over a long holding period. On income, IFLN currently yields 5.85% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

IFLN and VYM share 0 holdings out of 664 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, IFLN or VYM?

IFLN has an expense ratio of 0.23% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $19 per year of difference.

Which performed better, IFLN or VYM?

Over the past year IFLN returned +4.79% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), IFLN annualized -0.35% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, IFLN or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 10.3% for IFLN. Worst drawdown: IFLN -48.8% vs VYM -58.8%.

Should I hold both IFLN and VYM?

IFLN and VYM have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IFLN and VYM?

IFLN and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 664 unique securities.

Which pays a higher dividend, IFLN or VYM?

IFLN yields 5.85% while VYM yields 2.86%, so IFLN currently pays the higher dividend yield.

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