IVOL vs VYM
Quadratic Interest Rate Volatility and Inflation Hedge 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 616 holdings.
Side-by-Side Comparison
| Metric | IVOL | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.04% | |
| AUM | $288M | $81.6B | |
| Dividend Yield | 4.19% | 2.24% | |
| Holdings | 12 | 616 | |
| YTD Return | -6.22% | +14.66% | |
| 1Y Return | -7.28% | +22.16% | |
| 3Y Return (annualized) | -2.19% | +18.72% | |
| 5Y Return (annualized) | -5.41% | +12.18% | |
| Volatility (annualized) | 8.8% | 14.6% | |
| Max Drawdown | -31.2% | -58.8% | |
| Fund Family | Quadratic Capital Management LLC | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 13, 2019 | Nov 10, 2006 |
IVOL vs VYM Performance
Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL) is a ETF from Quadratic Capital Management LLC and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IVOL returned -7.28% while VYM returned +22.16%. Year to date, IVOL is down 6.22% versus a gain of 14.66% for VYM.
Over three years, IVOL compounded at -2.19% per year against +18.72% for VYM; over five years the annualized figures are -5.41% and +12.18% respectively. Across the full 7-year window we track, VYM has the edge at +7.01% annualized vs -2.13%. 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 8.8% for IVOL. 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 -31.2% for IVOL 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVOL charges 0.98% per year while VYM charges 0.04%. On a $10,000 position that is $98 vs $4 annually, a gap of $94 per year that compounds over a long holding period. On income, IVOL currently yields 4.19% against 2.24% for VYM.
Holdings Overlap
IVOL and VYM share 0 holdings out of 604 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, IVOL or VYM?
IVOL has an expense ratio of 0.98% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $94 per year of difference.
Which performed better, IVOL or VYM?
Over the past year IVOL returned -7.28% vs +22.16% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), IVOL annualized -2.13% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, IVOL or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.8% for IVOL. Worst drawdown: IVOL -31.2% vs VYM -58.8%.
Should I hold both IVOL and VYM?
IVOL and VYM have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVOL and VYM?
IVOL and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 604 unique securities.
Which pays a higher dividend, IVOL or VYM?
IVOL yields 4.19% while VYM yields 2.24%, so IVOL currently pays the higher dividend yield.
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