IQQQ vs VYM

IQQQ vs VYM

Which is better, IQQQ or VYM?

Each has led over a different period.

VYM has a lower expense ratio. IQQQ led over the full window, VYM over 1Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 48.0%.

Lower Fees: VYMHigher Returns: splitLess Concentrated: VYM

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

MetricIQQQVYM
Expense Ratio0.55%0.04%Best
AUM$401M$81.6B
Dividend Yield5.73%2.22%
Holdings108613
YTD Return+12.91%Best+12.87%
1Y Return+17.16%+17.25%Best
3Y Return (annualized)-+17.66%
5Y Return (annualized)-+11.98%
Volatility (annualized)16.7%10.3%Best
Max Drawdown-21.5%-14.5%Best
$10,000 over 2.5 years$14,772Best$14,474
Top 10 Weight48.0%26.1%Best
Fund FamilyProSharesVanguard (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionMar 18, 2024Nov 10, 2006

Volatility and max drawdown, and the $10,000 over 2.5 years row, are measured over the window both funds cover: Mar 20, 2024 to Sep 15, 2026 (2.5 years).

IQQQ 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 2.5 years both funds cover.

IQQQ vs VYM Performance

Proshares Nasdaq-100 High Income ETF (IQQQ) is an ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year IQQQ returned +17.16% while VYM returned +17.25%. Year to date, IQQQ is up 12.91% versus a gain of 12.87% for VYM.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IQQQ has been the more volatile fund, with annualized monthly volatility of 16.7% compared with 10.3% 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 -21.5% for IQQQ and -14.5% 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 0.48. They move together some of the time, and apart the rest.

Fees and Cost Over Time

IQQQ charges 0.55% per year while VYM charges 0.04%. On a $10,000 position that is $55 vs $4 annually, a gap of $51 per year that compounds over a long holding period. On income, IQQQ currently yields 5.73% against 2.22% for VYM.

Holdings Overlap

IQQQ already in VYM14.3%
VYM already in IQQQ19.6%

14.3% of IQQQ's money is in holdings VYM also owns. 19.6% of VYM's money is in holdings IQQQ also owns.

VYM and IQQQ share little of their money.

28 positions in common, counted across the 103 positions we hold weights for in IQQQ and 557 in VYM, against full books of 108 and 613.

What only one of them owns

Our book lists 500 positions for VYM that do not appear in our book for IQQQ (77.5% of the fund), and 68 for IQQQ that do not appear in VYM (79.4%).

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 IQQQWeight in VYMDifference
AVGOBroadcom Inc2.38%7.35%4.97%
CSCOCisco Systems Inc. - Ordinary Shares1.63%1.86%0.23%
TXNTexas Instrument Inc0.89%1.02%0.13%
LINLinde Plc Ordinary Shares0.85%0.90%0.05%
AMGNAmgen Inc.0.87%0.78%0.09%
PEPPepsico Inc.0.72%0.77%0.05%
ADIAnalog Devices, Inc.0.66%0.73%0.07%
GILDGilead Sciences0.68%0.66%0.02%
QCOMQualcomm Inc.0.67%0.63%0.04%
TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#5855580.73%0.34%0.39%

You are not choosing between two funds in isolation.

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

IQQQVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IQQQ or VYM?

IQQQ has an expense ratio of 0.55% while VYM charges 0.04%. VYM is the cheaper option, by $51 a year on a $10,000 investment.

Which performed better, IQQQ or VYM?

Over the past year IQQQ returned +17.16% vs +17.25% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IQQQ or VYM?

IQQQ has been the more volatile fund at 16.7% annualized versus 10.3% for VYM. Worst drawdown: IQQQ -21.5% vs VYM -14.5%.

Should I hold both IQQQ and VYM?

IQQQ and VYM have a monthly-return correlation of 0.48, 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 IQQQ and VYM?

19.6% of VYM's money is in holdings IQQQ also owns. 19.6% of VYM's is in holdings IQQQ also owns. They hold 28 positions in common, counted across the 103 positions we hold weights for in IQQQ and 557 in VYM.

Which pays a higher dividend, IQQQ or VYM?

IQQQ yields 5.73% while VYM yields 2.22%, so IQQQ currently pays the higher dividend yield.

Is VYM better than IQQQ?

VYM has a lower expense ratio. IQQQ led over the full window, VYM over 1Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 48.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.