IUS vs VYM

IUS vs VYM

Which is better, IUS or VYM?

IUS has been ahead.

VYM has a lower expense ratio. IUS led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 26.5%.

Lower Fees: VYMHigher Returns: IUSLess 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

MetricIUSVYM
Expense Ratio0.19%0.04%Best
AUM$981M$81.6B
Dividend Yield1.21%2.22%
Holdings541613
YTD Return+21.74%Best+13.91%
1Y Return+28.22%Best+17.57%
3Y Return (annualized)+21.49%Best+18.12%
5Y Return (annualized)+15.01%Best+12.17%
Volatility (annualized)16.6%15.5%Best
Max Drawdown-35.2%Best-35.7%
$10,000 over 5 years$20,122Best$17,758
Top 10 Weight26.5%25.9%Best
Fund FamilyInvesco (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionSep 12, 2018Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Sep 12, 2018 to Sep 11, 2026 (8 years).

IUS 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 8 years both funds cover.

IUS vs VYM Performance

Invesco RAFI Strategic US ETF (IUS) is an ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year IUS returned +28.22% while VYM returned +17.57%. Year to date, IUS is up 21.74% versus a gain of 13.91% for VYM.

Over three years, IUS compounded at +21.49% per year against +18.12% for VYM; over five years the annualized figures are +15.01% and +12.17% respectively. Across the full 8-year window we track, IUS has the edge at +15.05% annualized vs +10.25%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IUS has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 15.5% 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 -35.2% for IUS and -35.7% 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

IUS charges 0.19% per year while VYM charges 0.04%. On a $10,000 position that is $19 vs $4 annually, a gap of $15 per year that compounds over a long holding period. On income, IUS currently yields 1.21% against 2.22% for VYM.

Holdings Overlap

IUS already in VYM45.3%
VYM already in IUS69.7%

45.3% of IUS's money is in holdings VYM also owns. 69.7% of VYM's money is in holdings IUS also owns.

The two portfolios partly overlap.

226 positions in common, counted across the 498 positions we hold weights for in IUS and 603 in VYM, against full books of 541 and 613.

What only one of them owns

Our book lists 343 positions for VYM that do not appear in our book for IUS (27.9% of the fund), and 259 for IUS that do not appear in VYM (51.9%).

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 IUSWeight in VYMDifference
AVGOBroadcom Inc0.83%7.29%6.46%
XOMExxon Mobil Corp.2.14%2.36%0.22%
JNJJohnson & Johnson0.92%2.54%1.62%
UNHUnitedhealth Group Inc.1.37%1.56%0.19%
CVXChevron Corp.1.37%1.28%0.09%
CSCOCisco Systems Inc. - Ordinary Shares0.57%1.93%1.36%
ABBVAbbvie Inc.0.56%1.85%1.29%
CATCaterpillar, Inc.0.39%2.01%1.62%
PGProcter & Gamble Company0.72%1.42%0.70%
HDHome Depot Inc/The0.67%1.46%0.79%

69.7% of VYM is already inside IUS.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

IUSVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IUS or VYM?

IUS has an expense ratio of 0.19% while VYM charges 0.04%. VYM is the cheaper option, by $15 a year on a $10,000 investment.

Which performed better, IUS or VYM?

Over the past year IUS returned +28.22% vs +17.57% for VYM, so IUS leads on 1-year performance. Over the longest common window we track (8 years), IUS annualized +15.05% vs +10.25% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IUS or VYM?

IUS has been the more volatile fund at 16.6% annualized versus 15.5% for VYM. Worst drawdown: IUS -35.2% vs VYM -35.7%.

Should I hold both IUS and VYM?

IUS and VYM have a monthly-return correlation of 0.94, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between IUS and VYM?

69.7% of VYM's money is in holdings IUS also owns. 69.7% of VYM's is in holdings IUS also owns. They hold 226 positions in common, counted across the 498 positions we hold weights for in IUS and 603 in VYM.

Which pays a higher dividend, IUS or VYM?

IUS yields 1.21% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.

Is VYM better than IUS?

VYM has a lower expense ratio. IUS led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.94. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 26.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.