ISMF vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 568 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricISMFVYMWinner
Expense Ratio0.80%0.04%
AUM$61M$79.0B
Dividend Yield2.58%2.86%
Holdings127568
YTD Return+6.99%+16.78%
1Y Return+19.52%+24.43%
3Y Return (annualized)-+18.60%
5Y Return (annualized)-+12.30%
Volatility (annualized)6.1%14.6%
Max Drawdown-4.2%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryAlternativeEquity
InceptionMar 12, 2025Nov 10, 2006

ISMF vs VYM Performance

iShares Managed Futures Active ETF (ISMF) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ISMF returned +19.52% while VYM returned +24.43%. Year to date, ISMF is up 6.99% versus a gain of 16.78% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 6.1% for ISMF. 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 -4.2% for ISMF 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

ISMF charges 0.80% per year while VYM charges 0.04%. On a $10,000 position that is $80 vs $4 annually, a gap of $76 per year that compounds over a long holding period. On income, ISMF currently yields 2.58% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

ISMF and VYM share 0 holdings out of 559 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, ISMF or VYM?

ISMF has an expense ratio of 0.80% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $76 per year of difference.

Which performed better, ISMF or VYM?

Over the past year ISMF returned +19.52% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), ISMF annualized +14.07% vs +7.11% for VYM. Past performance does not guarantee future results.

Which is riskier, ISMF or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 6.1% for ISMF. Worst drawdown: ISMF -4.2% vs VYM -58.8%.

Should I hold both ISMF and VYM?

ISMF and VYM have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ISMF and VYM?

ISMF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.

Which pays a higher dividend, ISMF or VYM?

ISMF yields 2.58% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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