IIM vs VOO
Invesco Value Municipal Income Trust 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 505 holdings.
Side-by-Side Comparison
| Metric | IIM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.70% | 0.03% | |
| AUM | $3,691.17 | $979.0B | |
| Dividend Yield | 7.43% | 1.09% | |
| Holdings | 499 | 509 | |
| YTD Return | +8.26% | +14.48% | |
| 1Y Return | +18.52% | +22.02% | |
| 3Y Return (annualized) | +10.38% | +21.80% | |
| 5Y Return (annualized) | +0.49% | +13.36% | |
| Volatility (annualized) | 12.1% | 14.2% | |
| Max Drawdown | -46.5% | -34.3% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 26, 1993 | Sep 7, 2010 |
IIM vs VOO Performance
Invesco Value Municipal Income Trust (IIM) is a ETF from Invesco (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IIM returned +18.52% while VOO returned +22.02%. Year to date, IIM is up 8.26% versus a gain of 14.48% for VOO.
Over three years, IIM compounded at +10.38% per year against +21.80% for VOO; over five years the annualized figures are +0.49% and +13.36% respectively. Across the full 16-year window we track, VOO has the edge at +13.61% annualized vs +1.43%. 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 12.1% 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 -46.5% for IIM 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
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 7.43% against 1.09% for VOO.
Holdings Overlap
IIM and VOO share 0 holdings out of 750 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, IIM or VOO?
IIM has an expense ratio of 1.70% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $167 per year of difference.
Which performed better, IIM or VOO?
Over the past year IIM returned +18.52% vs +22.02% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), IIM annualized +1.43% vs +13.61% for VOO. Past performance does not guarantee future results.
Which is riskier, IIM or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 12.1% for IIM. Worst drawdown: IIM -46.5% vs VOO -34.3%.
Should I hold both IIM and VOO?
IIM and VOO have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IIM and VOO?
IIM and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 750 unique securities.
Which pays a higher dividend, IIM or VOO?
IIM yields 7.43% while VOO yields 1.09%, so IIM currently pays the higher dividend yield.
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