IIF vs VYM
Morgan Stanley India Investment Fund Inc. 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 | IIF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.28% | 0.04% | |
| AUM | $318M | $81.6B | |
| Dividend Yield | 7.69% | 2.24% | |
| Holdings | 46 | 616 | |
| YTD Return | -8.31% | +15.60% | |
| 1Y Return | -9.12% | +23.48% | |
| 3Y Return (annualized) | +12.76% | +19.07% | |
| 5Y Return (annualized) | +8.52% | +12.50% | |
| Volatility (annualized) | 31.0% | 14.6% | |
| Max Drawdown | -62.1% | -58.8% | |
| Fund Family | Morgan Stanley Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 25, 1994 | Nov 10, 2006 |
IIF vs VYM Performance
Morgan Stanley India Investment Fund Inc. (IIF) is a ETF from Morgan Stanley Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IIF returned -9.12% while VYM returned +23.48%. Year to date, IIF is down 8.31% versus a gain of 15.60% for VYM.
Over three years, IIF compounded at +12.76% per year against +19.07% for VYM; over five years the annualized figures are +8.52% and +12.50% respectively. Across the full 20-year window we track, IIF has the edge at +17.66% annualized vs +7.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IIF has been the more volatile fund, with annualized monthly volatility of 31.0% 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 -62.1% for IIF 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IIF charges 1.28% per year while VYM charges 0.04%. On a $10,000 position that is $128 vs $4 annually, a gap of $124 per year that compounds over a long holding period. On income, IIF currently yields 7.69% against 2.24% for VYM.
Holdings Overlap
IIF and VYM share 0 holdings out of 649 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, IIF or VYM?
IIF has an expense ratio of 1.28% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $124 per year of difference.
Which performed better, IIF or VYM?
Over the past year IIF returned -9.12% vs +23.48% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), IIF annualized +17.66% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, IIF or VYM?
IIF has been the more volatile fund at 31.0% annualized versus 14.6% for VYM. Worst drawdown: IIF -62.1% vs VYM -58.8%.
Should I hold both IIF and VYM?
IIF and VYM have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IIF and VYM?
IIF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 649 unique securities.
Which pays a higher dividend, IIF or VYM?
IIF yields 7.69% while VYM yields 2.24%, so IIF currently pays the higher dividend yield.
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