Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricILSVYMWinner
Expense Ratio1.58%0.04%
AUM$81M$79.0B
Dividend Yield8.23%2.86%
Holdings81568
YTD Return+3.70%+15.80%
1Y Return+7.82%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)2.6%14.6%
Max Drawdown-1.6%-58.8%
Fund FamilyILS ETFsVanguard (US)
CategoryFixed IncomeEquity
InceptionMar 14, 2025Nov 10, 2006

ILS vs VYM Performance

Brookmont Catastrophic Bond ETF (ILS) is a ETF from ILS ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ILS returned +7.82% while VYM returned +26.12%. Year to date, ILS is up 3.70% versus a gain of 15.80% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 2.6% for ILS. 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 -1.6% for ILS 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 0.01. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

ILS charges 1.58% per year while VYM charges 0.04%. On a $10,000 position that is $158 vs $4 annually, a gap of $154 per year that compounds over a long holding period. On income, ILS currently yields 8.23% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

ILS and VYM share 0 holdings out of 559 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, ILS or VYM?

ILS has an expense ratio of 1.58% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $154 per year of difference.

Which performed better, ILS or VYM?

Over the past year ILS returned +7.82% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), ILS annualized +7.00% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, ILS or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 2.6% for ILS. Worst drawdown: ILS -1.6% vs VYM -58.8%.

Should I hold both ILS and VYM?

ILS and VYM have a monthly-return correlation of 0.01, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ILS and VYM?

ILS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.

Which pays a higher dividend, ILS or VYM?

ILS yields 8.23% while VYM yields 2.86%, so ILS currently pays the higher dividend yield.

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