IHDG vs VYM
WisdomTree International Hedged Quality Dividend Growth Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | IHDG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.04% | |
| AUM | $2.2B | $81.6B | |
| Dividend Yield | 1.80% | 2.24% | |
| Holdings | 271 | 616 | |
| YTD Return | +9.18% | +15.60% | |
| 1Y Return | +19.06% | +23.48% | |
| 3Y Return (annualized) | +12.89% | +19.07% | |
| 5Y Return (annualized) | +7.80% | +12.50% | |
| Volatility (annualized) | 12.6% | 14.6% | |
| Max Drawdown | -29.2% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 7, 2014 | Nov 10, 2006 |
IHDG vs VYM Performance
WisdomTree International Hedged Quality Dividend Growth Fund (IHDG) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IHDG returned +19.06% while VYM returned +23.48%. Year to date, IHDG is up 9.18% versus a gain of 15.60% for VYM.
Over three years, IHDG compounded at +12.89% per year against +19.07% for VYM; over five years the annualized figures are +7.80% and +12.50% respectively. Across the full 12-year window we track, IHDG has the edge at +8.29% annualized vs +7.05%. 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 12.6% for IHDG. 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 -29.2% for IHDG 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IHDG charges 0.58% per year while VYM charges 0.04%. On a $10,000 position that is $58 vs $4 annually, a gap of $54 per year that compounds over a long holding period. On income, IHDG currently yields 1.80% against 2.24% for VYM.
Holdings Overlap
IHDG and VYM share 4 holdings out of 865 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IHDG or VYM?
IHDG has an expense ratio of 0.58% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, IHDG or VYM?
Over the past year IHDG returned +19.06% vs +23.48% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), IHDG annualized +8.29% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, IHDG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.6% for IHDG. Worst drawdown: IHDG -29.2% vs VYM -58.8%.
Should I hold both IHDG and VYM?
IHDG and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IHDG and VYM?
IHDG and VYM share 4 common holdings with a 0.2% weight overlap. Combined, they hold 865 unique securities.
Which pays a higher dividend, IHDG or VYM?
IHDG yields 1.80% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.