IHYF vs VTI
Invesco High Yield Bond Factor ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IHYF | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $134M | $666.9B | |
| Dividend Yield | 6.50% | 1.07% | |
| Holdings | 432 | 3,543 | |
| YTD Return | +0.48% | +13.14% | |
| 1Y Return | +6.48% | +22.35% | |
| 3Y Return (annualized) | +9.19% | +21.83% | |
| 5Y Return (annualized) | +3.88% | +12.01% | |
| Volatility (annualized) | 6.9% | 15.3% | |
| Max Drawdown | -36.0% | -56.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 30, 2020 | May 24, 2001 |
IHYF vs VTI Performance
Invesco High Yield Bond Factor ETF (IHYF) is a ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IHYF returned +6.48% while VTI returned +22.35%. Year to date, IHYF is up 0.48% versus a gain of 13.14% for VTI.
Over three years, IHYF compounded at +9.19% per year against +21.83% for VTI; over five years the annualized figures are +3.88% and +12.01% respectively. Across the full 5-year window we track, VTI has the edge at +8.09% annualized vs +4.16%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IHYF charges 0.39% per year while VTI 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 1.07% for VTI.
Holdings Overlap
IHYF and VTI share 0 holdings out of 3183 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 VTI?
IHYF has an expense ratio of 0.39% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, IHYF or VTI?
Over the past year IHYF returned +6.48% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (5 years), IHYF annualized +4.16% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, IHYF or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 6.9% for IHYF. Worst drawdown: IHYF -36.0% vs VTI -56.6%.
Should I hold both IHYF and VTI?
IHYF and VTI have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IHYF and VTI?
IHYF and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3183 unique securities.
Which pays a higher dividend, IHYF or VTI?
IHYF yields 6.50% while VTI yields 1.07%, so IHYF currently pays the higher dividend yield.
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