IIM vs VYM
Invesco Value Municipal Income Trust 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 | IIM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.70% | 0.04% | |
| AUM | $3,691.17 | $79.0B | |
| Dividend Yield | 7.43% | 2.86% | |
| Holdings | 499 | 568 | |
| YTD Return | +8.26% | +16.78% | |
| 1Y Return | +18.52% | +24.43% | |
| 3Y Return (annualized) | +10.38% | +18.60% | |
| 5Y Return (annualized) | +0.49% | +12.30% | |
| Volatility (annualized) | 12.1% | 14.6% | |
| Max Drawdown | -46.5% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 26, 1993 | Nov 10, 2006 |
IIM vs VYM Performance
Invesco Value Municipal Income Trust (IIM) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IIM returned +18.52% while VYM returned +24.43%. Year to date, IIM is up 8.26% versus a gain of 16.78% for VYM.
Over three years, IIM compounded at +10.38% per year against +18.60% for VYM; over five years the annualized figures are +0.49% and +12.30% respectively. Across the full 20-year window we track, VYM has the edge at +7.11% annualized vs +1.43%. 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 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 -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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IIM charges 1.70% per year while VYM charges 0.04%. On a $10,000 position that is $170 vs $4 annually, a gap of $166 per year that compounds over a long holding period. On income, IIM currently yields 7.43% against 2.86% for VYM.
Holdings Overlap
IIM and VYM share 0 holdings out of 803 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 VYM?
IIM has an expense ratio of 1.70% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $166 per year of difference.
Which performed better, IIM or VYM?
Over the past year IIM returned +18.52% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), IIM annualized +1.43% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, IIM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 12.1% for IIM. Worst drawdown: IIM -46.5% vs VYM -58.8%.
Should I hold both IIM and VYM?
IIM and VYM have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IIM and VYM?
IIM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 803 unique securities.
Which pays a higher dividend, IIM or VYM?
IIM yields 7.43% while VYM yields 2.86%, so IIM currently pays the higher dividend yield.
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