IIM vs VOO

IIM vs VOO

Which is better, IIM or VOO?

Municipal Bond against Large Cap Blend.

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VOOHigher Returns: VOO

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricIIMVOO
Expense Ratio1.70%0.03%Best
AUM$3,691.17$997.4B
Dividend Yield7.66%1.08%
Holdings499509
YTD Return+5.35%+13.37%Best
1Y Return+13.30%+20.08%Best
3Y Return (annualized)+9.85%+21.29%Best
5Y Return (annualized)-0.23%+12.89%Best
Volatility (annualized)13.6%Best14.1%
Max Drawdown-36.6%-34.3%Best
$10,000 over 5 years$9,886$18,335Best
Fund FamilyInvesco (US)Vanguard (US)
CategoryFixed IncomeEquity
StyleMunicipal BondLarge Cap Blend
InceptionFeb 26, 1993Sep 7, 2010

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 4, 2026 (16 years).

IIM vs VOO growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

IIM vs VOO Performance

Invesco Value Municipal Income Trust (IIM) is an ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year IIM returned +13.30% while VOO returned +20.08%. Year to date, IIM is up 5.35% versus a gain of 13.37% for VOO.

Over three years, IIM compounded at +9.85% per year against +21.29% for VOO; over five years the annualized figures are -0.23% and +12.89% respectively. Across the full 16-year window we track, VOO has the edge at +13.48% annualized vs +0.65%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 13.6% for IIM. 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 -36.6% for IIM and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.34. They move together some of the time, and apart the rest.

Fees and Cost Over Time

IIM charges 1.70% per year while VOO charges 0.03%. On a $10,000 position that is $170 vs $3 annually, a gap of $167 per year that compounds over a long holding period. On income, IIM currently yields 7.66% against 1.08% for VOO.

Holdings Overlap

We hold position weights for 245 holdings in IIM and 505 in VOO, totalling 78.2% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

The two holdings books were reported 122 days apart, IIM as of Feb 28, 2026 and VOO as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.

0 positions in common, counted across the 245 positions we hold weights for in IIM and 505 in VOO, against full books of 499 and 509.

You are not choosing between two funds in isolation.

Whichever of IIM and VOO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IIMVOO

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IIM or VOO?

IIM has an expense ratio of 1.70% while VOO charges 0.03%. VOO is the cheaper option, by $167 a year on a $10,000 investment.

Which performed better, IIM or VOO?

Over the past year IIM returned +13.30% vs +20.08% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), IIM annualized +0.65% vs +13.48% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IIM or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 13.6% for IIM. Worst drawdown: IIM -36.6% vs VOO -34.3%.

Should I hold both IIM and VOO?

IIM and VOO have a monthly-return correlation of 0.34, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, IIM or VOO?

IIM yields 7.66% while VOO yields 1.08%, so IIM currently pays the higher dividend yield.

Is VOO better than IIM?

VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.