IQDY vs VYM

IQDY vs VYM

Which is better, IQDY or VYM?

Each has led over a different period.

VYM has a lower expense ratio. IQDY led over 1Y, 3Y and 5Y, VYM over the full window. IQDY is less concentrated, with 20.9% of the fund in its ten largest positions against 25.9%.

Lower Fees: VYMHigher Returns: splitLess Concentrated: IQDY

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

MetricIQDYVYM
Expense Ratio0.47%0.04%Best
AUM$114M$81.6B
Dividend Yield2.89%2.22%
Holdings252613
YTD Return+19.29%Best+13.91%
1Y Return+31.61%Best+17.57%
3Y Return (annualized)+25.41%Best+18.12%
5Y Return (annualized)+12.50%Best+12.17%
Volatility (annualized)17.2%13.3%Best
Max Drawdown-45.3%-35.7%Best
$10,000 over 5 years$18,020Best$17,758
Top 10 Weight20.9%Best25.9%
Fund FamilyNorthern Trust Asset ManagementVanguard (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionApr 12, 2013Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Apr 16, 2013 to Sep 11, 2026 (13.4 years).

IQDY 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 13.4 years both funds cover.

IQDY vs VYM Performance

Northern Trust International Quality Dividend Dynamic ETF (IQDY) is an ETF from Northern Trust Asset Management and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year IQDY returned +31.61% while VYM returned +17.57%. Year to date, IQDY is up 19.29% versus a gain of 13.91% for VYM.

Over three years, IQDY compounded at +25.41% per year against +18.12% for VYM; over five years the annualized figures are +12.50% and +12.17% respectively. Across the full 13-year window we track, VYM has the edge at +9.68% annualized vs +6.52%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IQDY has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 13.3% 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 -45.3% for IQDY and -35.7% 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 0.80. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IQDY charges 0.47% per year while VYM charges 0.04%. On a $10,000 position that is $47 vs $4 annually, a gap of $43 per year that compounds over a long holding period. On income, IQDY currently yields 2.89% against 2.22% for VYM.

Holdings Overlap

IQDY already in VYM0.2%
VYM already in IQDY0.1%

0.2% of IQDY's money is in holdings VYM also owns. 0.1% of VYM's money is in holdings IQDY also owns.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 200 positions we hold weights for in IQDY and 603 in VYM, against full books of 252 and 613.

What only one of them owns

Our book lists 567 positions for VYM that do not appear in our book for IQDY (97.4% of the fund), and 2 for IQDY that do not appear in VYM (0.5%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in IQDYWeight in VYMDifference
OVVOvintiv Inc.0.24%0.06%0.18%

You are not choosing between two funds in isolation.

Whichever of IQDY and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IQDYVYM

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Frequently Asked Questions

Which is cheaper, IQDY or VYM?

IQDY has an expense ratio of 0.47% while VYM charges 0.04%. VYM is the cheaper option, by $43 a year on a $10,000 investment.

Which performed better, IQDY or VYM?

Over the past year IQDY returned +31.61% vs +17.57% for VYM, so IQDY leads on 1-year performance. Over the longest common window we track (13 years), IQDY annualized +6.52% vs +9.68% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IQDY or VYM?

IQDY has been the more volatile fund at 17.2% annualized versus 13.3% for VYM. Worst drawdown: IQDY -45.3% vs VYM -35.7%.

Should I hold both IQDY and VYM?

IQDY and VYM have a monthly-return correlation of 0.80, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, IQDY or VYM?

IQDY yields 2.89% while VYM yields 2.22%, so IQDY currently pays the higher dividend yield.

Is VYM better than IQDY?

VYM has a lower expense ratio. IQDY led over 1Y, 3Y and 5Y, VYM over the full window. IQDY is less concentrated, with 20.9% of the fund in its ten largest positions against 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.