IGCB 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

MetricIGCBVYMWinner
Expense Ratio0.35%0.04%
AUM-$79.0B
Dividend Yield4.73%2.86%
Holdings391568
YTD Return-0.92%+15.80%
1Y Return+1.29%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)4.0%14.6%
Max Drawdown-4.2%-58.8%
Fund FamilyTCW ETFsVanguard (US)
CategoryFixed IncomeEquity
InceptionJun 29, 2018Nov 10, 2006

IGCB vs VYM Performance

TCW Corporate Bond ETF (IGCB) is a ETF from TCW ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IGCB returned +1.29% while VYM returned +26.12%. Year to date, IGCB is down 0.92% versus a gain of 15.80% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 4.0% for IGCB. 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 -4.2% for IGCB 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IGCB charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, IGCB currently yields 4.73% against 2.86% for VYM.

Holdings Overlap

0.1%overlap

IGCB and VYM share 1 holdings out of 875 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IGCBWeight in VYMDifference
CNP0.22%0.12%0.10%

Frequently Asked Questions

Which is cheaper, IGCB or VYM?

IGCB has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.

Which performed better, IGCB or VYM?

Over the past year IGCB returned +1.29% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), IGCB annualized +3.96% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, IGCB or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 4.0% for IGCB. Worst drawdown: IGCB -4.2% vs VYM -58.8%.

Should I hold both IGCB and VYM?

IGCB and VYM have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IGCB and VYM?

IGCB and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 875 unique securities.

Which pays a higher dividend, IGCB or VYM?

IGCB yields 4.73% while VYM yields 2.86%, so IGCB currently pays the higher dividend yield.

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