ITM vs VYM
VanEck Intermediate Muni ETF 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 | ITM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.04% | |
| AUM | $2.2B | $79.0B | |
| Dividend Yield | 2.92% | 2.86% | |
| Holdings | 1,365 | 568 | |
| YTD Return | -2.14% | +15.80% | |
| 1Y Return | +2.33% | +26.12% | |
| 3Y Return (annualized) | +2.59% | +18.25% | |
| 5Y Return (annualized) | -0.26% | +12.51% | |
| Volatility (annualized) | 24.6% | 14.6% | |
| Max Drawdown | -46.2% | -58.8% | |
| Fund Family | VanEck | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 4, 2007 | Nov 10, 2006 |
ITM vs VYM Performance
VanEck Intermediate Muni ETF (ITM) is a ETF from VanEck and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ITM returned +2.33% while VYM returned +26.12%. Year to date, ITM is down 2.14% versus a gain of 15.80% for VYM.
Over three years, ITM compounded at +2.59% per year against +18.25% for VYM; over five years the annualized figures are -0.26% and +12.51% respectively. Across the full 19-year window we track, VYM has the edge at +7.07% annualized vs +3.22%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ITM has been the more volatile fund, with annualized monthly volatility of 24.6% 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 -46.2% for ITM 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 0.09. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ITM charges 0.18% per year while VYM charges 0.04%. On a $10,000 position that is $18 vs $4 annually, a gap of $14 per year that compounds over a long holding period. On income, ITM currently yields 2.92% against 2.86% for VYM.
Holdings Overlap
ITM and VYM share 0 holdings out of 948 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, ITM or VYM?
ITM has an expense ratio of 0.18% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, ITM or VYM?
Over the past year ITM returned +2.33% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (19 years), ITM annualized +3.22% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, ITM or VYM?
ITM has been the more volatile fund at 24.6% annualized versus 14.6% for VYM. Worst drawdown: ITM -46.2% vs VYM -58.8%.
Should I hold both ITM and VYM?
ITM and VYM have a monthly-return correlation of 0.09, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITM and VYM?
ITM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 948 unique securities.
Which pays a higher dividend, ITM or VYM?
ITM yields 2.92% while VYM yields 2.86%, so ITM currently pays the higher dividend yield.
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