IQDY vs VYM
FlexShares International Quality Dividend Dynamic Index Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. IQDY delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | IQDY | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.04% | |
| AUM | $114M | $81.6B | |
| Dividend Yield | 2.96% | 2.24% | |
| Holdings | 252 | 616 | |
| YTD Return | +19.89% | +15.34% | |
| 1Y Return | +35.59% | +23.24% | |
| 3Y Return (annualized) | +26.41% | +19.22% | |
| 5Y Return (annualized) | +13.35% | +12.21% | |
| Volatility (annualized) | 17.2% | 14.6% | |
| Max Drawdown | -45.3% | -58.8% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 12, 2013 | Nov 10, 2006 |
IQDY vs VYM Performance
FlexShares International Quality Dividend Dynamic Index Fund (IQDY) is a ETF from Flexshares Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IQDY returned +35.59% while VYM returned +23.24%. Year to date, IQDY is up 19.89% versus a gain of 15.34% for VYM.
Over three years, IQDY compounded at +26.41% per year against +19.22% for VYM; over five years the annualized figures are +13.35% and +12.21% respectively. Across the full 13-year window we track, VYM has the edge at +7.04% annualized vs +6.59%. 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 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 -45.3% for IQDY 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 0.80. 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 2.96% against 2.24% for VYM.
Holdings Overlap
IQDY and VYM share 1 holdings out of 801 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IQDY | Weight in VYM | Difference |
|---|---|---|---|
| OVV | 0.22% | 0.06% | 0.16% |
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. On a $10,000 investment, that is $43 per year of difference.
Which performed better, IQDY or VYM?
Over the past year IQDY returned +35.59% vs +23.24% for VYM, so IQDY leads on 1-year performance. Over the longest common window we track (13 years), IQDY annualized +6.59% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, IQDY or VYM?
IQDY has been the more volatile fund at 17.2% annualized versus 14.6% for VYM. Worst drawdown: IQDY -45.3% vs VYM -58.8%.
Should I hold both IQDY and VYM?
IQDY and VYM have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IQDY and VYM?
IQDY and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 801 unique securities.
Which pays a higher dividend, IQDY or VYM?
IQDY yields 2.96% while VYM yields 2.24%, so IQDY currently pays the higher dividend yield.
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