ISEP vs VYM
Innovator International Developed Power Buffer ETF - September 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 558 holdings.
Side-by-Side Comparison
| Metric | ISEP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.04% | |
| AUM | $65M | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 6 | 568 | |
| YTD Return | +8.22% | +16.16% | |
| 1Y Return | +14.34% | +26.05% | |
| 3Y Return (annualized) | +12.60% | +18.43% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 7.5% | 14.6% | |
| Max Drawdown | -7.4% | -58.8% | |
| Fund Family | Innovator ETFs Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 1, 2023 | Nov 10, 2006 |
ISEP vs VYM Performance
Innovator International Developed Power Buffer ETF - September (ISEP) is a ETF from Innovator ETFs Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ISEP returned +14.34% while VYM returned +26.05%. Year to date, ISEP is up 8.22% versus a gain of 16.16% for VYM.
Over three years, ISEP compounded at +12.60% per year against +18.43% for VYM. Across the full 3-year window we track, ISEP has the edge at +12.60% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 7.5% for ISEP. 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 -7.4% for ISEP 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ISEP charges 0.85% per year while VYM charges 0.04%. On a $10,000 position that is $85 vs $4 annually, a gap of $81 per year that compounds over a long holding period. On income, ISEP currently yields 0.00% against 2.86% for VYM.
Frequently Asked Questions
Which is cheaper, ISEP or VYM?
ISEP has an expense ratio of 0.85% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $81 per year of difference.
Which performed better, ISEP or VYM?
Over the past year ISEP returned +14.34% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), ISEP annualized +12.60% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, ISEP or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.5% for ISEP. Worst drawdown: ISEP -7.4% vs VYM -58.8%.
Should I hold both ISEP and VYM?
ISEP and VYM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, ISEP or VYM?
ISEP yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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