INCM vs VYM
Franklin Income Focus ETF vs Vanguard High Dividend Yield ETF
Which is better, INCM or VYM?
Allocation/Balanced against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.91.
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
| Metric | INCM | VYM |
|---|---|---|
| Expense Ratio | 0.38% | 0.04%Best |
| AUM | $1.8B | $81.6B |
| Dividend Yield | 5.18% | 2.22% |
| Holdings | 381 | 613 |
| YTD Return | +6.89% | +11.71%Best |
| 1Y Return | +10.54% | +16.24%Best |
| 3Y Return (annualized) | +11.18% | +17.24%Best |
| 5Y Return (annualized) | - | +11.86% |
| Volatility (annualized) | 7.3%Best | 11.0% |
| Max Drawdown | -7.8%Best | -14.5% |
| $10,000 over 3.3 years | $13,791 | $16,694Best |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Allocation/Balanced | Large Cap Value |
| Inception | Jun 6, 2023 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3.3 years row, are measured over the window both funds cover: Jun 8, 2023 to Sep 16, 2026 (3.3 years).
INCM vs VYM 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 covers the 3.3 years both funds cover.
INCM vs VYM Performance
Franklin Income Focus ETF (INCM) is an ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year INCM returned +10.54% while VYM returned +16.24%. Year to date, INCM is up 6.89% versus a gain of 11.71% for VYM.
Over three years, INCM compounded at +11.18% per year against +17.24% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 11.0% compared with 7.3% for INCM. 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 -7.8% for INCM and -14.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
INCM charges 0.38% per year while VYM charges 0.04%. On a $10,000 position that is $38 vs $4 annually, a gap of $34 per year that compounds over a long holding period. On income, INCM currently yields 5.18% against 2.22% for VYM.
Holdings Overlap
At least 30.1% of VYM's money is in holdings INCM also owns.
Stated as a floor: for INCM, our book for it covers 58.0% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
The two portfolios partly overlap.
40 positions in common, counted across the 257 positions we hold weights for in INCM and 557 in VYM, against full books of 381 and 613.
Top Shared Holdings
| Stock | Weight in INCM | Weight in VYM | Difference |
|---|---|---|---|
| XOMExxon Mobil Corp. | 1.47% | 2.63% | 1.16% |
| PGProcter & Gamble Company | 1.85% | 1.37% | 0.48% |
| JNJJohnson & Johnson - Common | 0.51% | 2.51% | 2.00% |
| CVXChevron Corp | 1.38% | 1.48% | 0.10% |
| HDHome Depot Inc/The | 1.24% | 1.34% | 0.10% |
| BACBank of America Corp.: Financials | 0.76% | 1.66% | 0.90% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.45% | 1.86% | 1.41% |
| PEPPepsico Inc. | 1.21% | 0.77% | 0.44% |
| PMPhilip Morris International Inc. | 0.73% | 1.21% | 0.48% |
| MSMorgan Stanley | 0.58% | 0.96% | 0.38% |
30.1% of VYM is already inside INCM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, INCM or VYM?
INCM has an expense ratio of 0.38% while VYM charges 0.04%. VYM is the cheaper option, by $34 a year on a $10,000 investment.
Which performed better, INCM or VYM?
Over the past year INCM returned +10.54% vs +16.24% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, INCM or VYM?
VYM has been the more volatile fund at 11.0% annualized versus 7.3% for INCM. Worst drawdown: INCM -7.8% vs VYM -14.5%.
Should I hold both INCM and VYM?
INCM and VYM have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between INCM and VYM?
At least 30.1% of VYM's money is in holdings INCM also owns. Our book for INCM is partial, so the real figure is this or higher. They hold 40 positions in common, counted across the 257 positions we hold weights for in INCM and 557 in VYM.
Which pays a higher dividend, INCM or VYM?
INCM yields 5.18% while VYM yields 2.22%, so INCM currently pays the higher dividend yield.
Is VYM better than INCM?
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.91. Which one suits a particular account depends on what it is for. This is information, not a recommendation.