IHYF vs VYM
Invesco High Yield Bond Factor ETF 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 558 holdings.
Side-by-Side Comparison
| Metric | IHYF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.04% | |
| AUM | $134M | $79.0B | |
| Dividend Yield | 6.50% | 2.86% | |
| Holdings | 432 | 568 | |
| YTD Return | +0.48% | +16.53% | |
| 1Y Return | +6.48% | +25.03% | |
| 3Y Return (annualized) | +9.19% | +18.54% | |
| 5Y Return (annualized) | +3.88% | +12.25% | |
| Volatility (annualized) | 6.9% | 14.6% | |
| Max Drawdown | -36.0% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 30, 2020 | Nov 10, 2006 |
IHYF vs VYM Performance
Invesco High Yield Bond Factor ETF (IHYF) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IHYF returned +6.48% while VYM returned +25.03%. Year to date, IHYF is up 0.48% versus a gain of 16.53% for VYM.
Over three years, IHYF compounded at +9.19% per year against +18.54% for VYM; over five years the annualized figures are +3.88% and +12.25% respectively. Across the full 5-year window we track, VYM has the edge at +7.10% annualized vs +4.16%. 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 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 -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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IHYF charges 0.39% per year while VYM charges 0.04%. On a $10,000 position that is $39 vs $4 annually, a gap of $35 per year that compounds over a long holding period. On income, IHYF currently yields 6.50% against 2.86% for VYM.
Holdings Overlap
IHYF and VYM share 0 holdings out of 954 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 VYM?
IHYF has an expense ratio of 0.39% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, IHYF or VYM?
Over the past year IHYF returned +6.48% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), IHYF annualized +4.16% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, IHYF or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.9% for IHYF. Worst drawdown: IHYF -36.0% vs VYM -58.8%.
Should I hold both IHYF and VYM?
IHYF and VYM have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IHYF and VYM?
IHYF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 954 unique securities.
Which pays a higher dividend, IHYF or VYM?
IHYF yields 6.50% while VYM yields 2.86%, so IHYF 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.