IQM vs VYM
Franklin Intelligent Machines ETF vs Vanguard High Dividend Yield ETF
Which is better, IQM or VYM?
Large Cap Growth against Large Cap Value.
VYM has a lower expense ratio. IQM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 42.7%.
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 | IQM | VYM |
|---|---|---|
| Expense Ratio | 0.50% | 0.04%Best |
| AUM | $88M | $81.6B |
| Dividend Yield | 0.00% | 2.24% |
| Holdings | 80 | 613 |
| YTD Return | +19.24%Best | +14.82% |
| 1Y Return | +33.60%Best | +20.84% |
| 3Y Return (annualized) | +30.75%Best | +18.64% |
| 5Y Return (annualized) | +15.61%Best | +12.28% |
| Volatility (annualized) | 28.4% | 15.2%Best |
| Max Drawdown | -44.9% | -30.4%Best |
| $10,000 over 5 years | $20,653Best | $17,845 |
| Top 10 Weight | 42.7% | 25.9%Best |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Feb 25, 2020 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Feb 27, 2020 to Sep 4, 2026 (6.5 years).
IQM 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 6.5 years both funds cover.
IQM vs VYM Performance
Franklin Intelligent Machines ETF (IQM) 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 IQM returned +33.60% while VYM returned +20.84%. Year to date, IQM is up 19.24% versus a gain of 14.82% for VYM.
Over three years, IQM compounded at +30.75% per year against +18.64% for VYM; over five years the annualized figures are +15.61% and +12.28% respectively. Across the full 7-year window we track, IQM has the edge at +25.43% annualized vs +13.58%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IQM has been the more volatile fund, with annualized monthly volatility of 28.4% compared with 15.2% 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 -44.9% for IQM and -30.4% 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 0.58. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IQM charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, IQM currently yields 0.00% against 2.24% for VYM.
Holdings Overlap
6.2% of IQM's money is in holdings VYM also owns. 8.5% of VYM's money is in holdings IQM also owns.
VYM and IQM share little of their money.
4 positions in common, counted across the 78 positions we hold weights for in IQM and 603 in VYM, against full books of 80 and 613.
What only one of them owns
Our book lists 566 positions for VYM that do not appear in our book for IQM (88.9% of the fund), and 51 for IQM that do not appear in VYM (68.6%).
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.
You are not choosing between two funds in isolation.
Whichever of IQM and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IQM or VYM?
IQM has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option, by $46 a year on a $10,000 investment.
Which performed better, IQM or VYM?
Over the past year IQM returned +33.60% vs +20.84% for VYM, so IQM leads on 1-year performance. Over the longest common window we track (7 years), IQM annualized +25.43% vs +13.58% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IQM or VYM?
IQM has been the more volatile fund at 28.4% annualized versus 15.2% for VYM. Worst drawdown: IQM -44.9% vs VYM -30.4%.
Should I hold both IQM and VYM?
IQM and VYM have a monthly-return correlation of 0.58, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IQM and VYM?
8.5% of VYM's money is in holdings IQM also owns. 8.5% of VYM's is in holdings IQM also owns. They hold 4 positions in common, counted across the 78 positions we hold weights for in IQM and 603 in VYM.
Which pays a higher dividend, IQM or VYM?
IQM yields 0.00% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
Is VYM better than IQM?
VYM has a lower expense ratio. IQM led over 1Y, 3Y, 5Y and the full window. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 42.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.