IGPT vs VYM
Invesco AI and Next Gen Software ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IGPT delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | IGPT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.04% | |
| AUM | $1.2B | $79.0B | |
| Dividend Yield | 0.01% | 2.86% | |
| Holdings | 114 | 568 | |
| YTD Return | +49.86% | +15.80% | |
| 1Y Return | +82.02% | +26.12% | |
| 3Y Return (annualized) | +39.40% | +18.25% | |
| 5Y Return (annualized) | +13.31% | +12.51% | |
| Volatility (annualized) | 21.8% | 14.6% | |
| Max Drawdown | -50.1% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 23, 2005 | Nov 10, 2006 |
IGPT vs VYM Performance
Invesco AI and Next Gen Software ETF (IGPT) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IGPT returned +82.02% while VYM returned +26.12%. Year to date, IGPT is up 49.86% versus a gain of 15.80% for VYM.
Over three years, IGPT compounded at +39.40% per year against +18.25% for VYM; over five years the annualized figures are +13.31% and +12.51% respectively. Across the full 20-year window we track, IGPT has the edge at +15.12% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IGPT has been the more volatile fund, with annualized monthly volatility of 21.8% 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 -50.1% for IGPT 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGPT charges 0.56% per year while VYM charges 0.04%. On a $10,000 position that is $56 vs $4 annually, a gap of $52 per year that compounds over a long holding period. On income, IGPT currently yields 0.01% against 2.86% for VYM.
Holdings Overlap
IGPT and VYM share 8 holdings out of 652 unique holdings combined, representing a 2.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IGPT or VYM?
IGPT has an expense ratio of 0.56% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, IGPT or VYM?
Over the past year IGPT returned +82.02% vs +26.12% for VYM, so IGPT leads on 1-year performance. Over the longest common window we track (20 years), IGPT annualized +15.12% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, IGPT or VYM?
IGPT has been the more volatile fund at 21.8% annualized versus 14.6% for VYM. Worst drawdown: IGPT -50.1% vs VYM -58.8%.
Should I hold both IGPT and VYM?
IGPT and VYM have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGPT and VYM?
IGPT and VYM share 8 common holdings with a 2.2% weight overlap. Combined, they hold 652 unique securities.
Which pays a higher dividend, IGPT or VYM?
IGPT yields 0.01% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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