ITWO vs VYM
ProShares Russell 2000 High Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. ITWO delivered stronger 1-year returns. ITWO offers more diversification with 1,981 holdings.
Side-by-Side Comparison
| Metric | ITWO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.04% | |
| AUM | $199M | $81.6B | |
| Dividend Yield | 7.36% | 2.24% | |
| Holdings | 1,981 | 613 | |
| YTD Return | +12.92% | +14.87% | |
| 1Y Return | +21.90% | +21.39% | |
| 3Y Return (annualized) | - | +18.69% | |
| 5Y Return (annualized) | - | +11.98% | |
| Volatility (annualized) | 15.4% | 14.5% | |
| Max Drawdown | -24.8% | -58.8% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 4, 2024 | Nov 10, 2006 |
ITWO vs VYM Performance
ProShares Russell 2000 High Income ETF (ITWO) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year ITWO returned +21.90% while VYM returned +21.39%. Year to date, ITWO is up 12.92% versus a gain of 14.87% for VYM.
Risk: Volatility and Drawdowns
ITWO has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 14.5% 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 -24.8% for ITWO 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ITWO 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, ITWO currently yields 7.36% against 2.24% for VYM.
Holdings Overlap
ITWO and VYM share 181 holdings out of 2388 unique holdings combined, representing a 2.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ITWO or VYM?
ITWO has an expense ratio of 0.55% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, ITWO or VYM?
Over the past year ITWO returned +21.90% vs +21.39% for VYM, so ITWO leads on 1-year performance. Over the longest common window we track (2 years), ITWO annualized +15.98% vs +7.00% for VYM. Past performance does not guarantee future results.
Which is riskier, ITWO or VYM?
ITWO has been the more volatile fund at 15.4% annualized versus 14.5% for VYM. Worst drawdown: ITWO -24.8% vs VYM -58.8%.
Should I hold both ITWO and VYM?
ITWO and VYM have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITWO and VYM?
ITWO and VYM share 181 common holdings with a 2.5% weight overlap. Combined, they hold 2388 unique securities.
Which pays a higher dividend, ITWO or VYM?
ITWO yields 7.36% while VYM yields 2.24%, so ITWO currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.