INVG vs VYM
GMO Systematic Investment Grade Credit ETF 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 616 holdings.
Side-by-Side Comparison
| Metric | INVG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.04% | |
| AUM | $24M | $81.6B | |
| Dividend Yield | 5.30% | 2.24% | |
| Holdings | 127 | 616 | |
| YTD Return | +0.24% | +15.60% | |
| 1Y Return | +2.57% | +23.48% | |
| 3Y Return (annualized) | - | +19.07% | |
| 5Y Return (annualized) | - | +12.50% | |
| Volatility (annualized) | 3.5% | 14.6% | |
| Max Drawdown | -3.1% | -58.8% | |
| Fund Family | GMO | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 3, 2025 | Nov 10, 2006 |
INVG vs VYM Performance
GMO Systematic Investment Grade Credit ETF (INVG) is a ETF from GMO and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year INVG returned +2.57% while VYM returned +23.48%. Year to date, INVG is up 0.24% versus a gain of 15.60% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.5% for INVG. 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 -3.1% for INVG 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
INVG charges 0.25% per year while VYM charges 0.04%. On a $10,000 position that is $25 vs $4 annually, a gap of $21 per year that compounds over a long holding period. On income, INVG currently yields 5.30% against 2.24% for VYM.
Holdings Overlap
INVG and VYM share 0 holdings out of 716 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, INVG or VYM?
INVG has an expense ratio of 0.25% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, INVG or VYM?
Over the past year INVG returned +2.57% vs +23.48% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), INVG annualized +4.06% vs +7.05% for VYM. Past performance does not guarantee future results.
Which is riskier, INVG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.5% for INVG. Worst drawdown: INVG -3.1% vs VYM -58.8%.
Should I hold both INVG and VYM?
INVG and VYM have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between INVG and VYM?
INVG and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 716 unique securities.
Which pays a higher dividend, INVG or VYM?
INVG yields 5.30% while VYM yields 2.24%, so INVG currently pays the higher dividend yield.
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