IHYF vs VOO
Invesco High Yield Bond Factor ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | IHYF | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $134M | $979.0B | |
| Dividend Yield | 6.50% | 1.09% | |
| Holdings | 432 | 509 | |
| YTD Return | +0.48% | +14.48% | |
| 1Y Return | +6.48% | +22.02% | |
| 3Y Return (annualized) | +9.19% | +21.80% | |
| 5Y Return (annualized) | +3.88% | +13.36% | |
| Volatility (annualized) | 6.9% | 14.2% | |
| Max Drawdown | -36.0% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 30, 2020 | Sep 7, 2010 |
IHYF vs VOO Performance
Invesco High Yield Bond Factor ETF (IHYF) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IHYF returned +6.48% while VOO returned +22.02%. Year to date, IHYF is up 0.48% versus a gain of 14.48% for VOO.
Over three years, IHYF compounded at +9.19% per year against +21.80% for VOO; over five years the annualized figures are +3.88% and +13.36% respectively. Across the full 5-year window we track, VOO has the edge at +13.61% annualized vs +4.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% compared with 6.9% for IHYF. 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 -36.0% for IHYF and -34.3% for VOO. 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IHYF charges 0.39% per year while VOO charges 0.03%. On a $10,000 position that is $39 vs $3 annually, a gap of $36 per year that compounds over a long holding period. On income, IHYF currently yields 6.50% against 1.09% for VOO.
Holdings Overlap
IHYF and VOO share 0 holdings out of 901 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, IHYF or VOO?
IHYF has an expense ratio of 0.39% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, IHYF or VOO?
Over the past year IHYF returned +6.48% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (5 years), IHYF annualized +4.16% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, IHYF or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 6.9% for IHYF. Worst drawdown: IHYF -36.0% vs VOO -34.3%.
Should I hold both IHYF and VOO?
IHYF and VOO have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IHYF and VOO?
IHYF and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 901 unique securities.
Which pays a higher dividend, IHYF or VOO?
IHYF yields 6.50% while VOO yields 1.09%, so IHYF currently pays the higher dividend yield.
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