IQDG vs VYM
WisdomTree International Quality Dividend Growth Fund 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 | IQDG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.42% | 0.04% | |
| AUM | $731M | $81.6B | |
| Dividend Yield | 2.36% | 2.24% | |
| Holdings | 262 | 616 | |
| YTD Return | +6.05% | +14.66% | |
| 1Y Return | +13.89% | +22.16% | |
| 3Y Return (annualized) | +11.68% | +18.72% | |
| 5Y Return (annualized) | +4.26% | +12.18% | |
| Volatility (annualized) | 16.0% | 14.6% | |
| Max Drawdown | -35.0% | -58.8% | |
| Fund Family | WisdomTree Investments | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 7, 2016 | Nov 10, 2006 |
IQDG vs VYM Performance
WisdomTree International Quality Dividend Growth Fund (IQDG) is a ETF from WisdomTree Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IQDG returned +13.89% while VYM returned +22.16%. Year to date, IQDG is up 6.05% versus a gain of 14.66% for VYM.
Over three years, IQDG compounded at +11.68% per year against +18.72% for VYM; over five years the annualized figures are +4.26% and +12.18% respectively. Across the full 10-year window we track, IQDG has the edge at +8.07% annualized vs +7.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IQDG has been the more volatile fund, with annualized monthly volatility of 16.0% compared with 14.6% for VYM. 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 -35.0% for IQDG 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IQDG charges 0.42% per year while VYM charges 0.04%. On a $10,000 position that is $42 vs $4 annually, a gap of $38 per year that compounds over a long holding period. On income, IQDG currently yields 2.36% against 2.24% for VYM.
Holdings Overlap
IQDG and VYM share 3 holdings out of 858 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IQDG or VYM?
IQDG has an expense ratio of 0.42% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, IQDG or VYM?
Over the past year IQDG returned +13.89% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), IQDG annualized +8.07% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, IQDG or VYM?
IQDG has been the more volatile fund at 16.0% annualized versus 14.6% for VYM. Worst drawdown: IQDG -35.0% vs VYM -58.8%.
Should I hold both IQDG and VYM?
IQDG and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IQDG and VYM?
IQDG and VYM share 3 common holdings with a 0.2% weight overlap. Combined, they hold 858 unique securities.
Which pays a higher dividend, IQDG or VYM?
IQDG yields 2.36% while VYM yields 2.24%, so IQDG currently pays the higher dividend yield.
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