KIO vs VYM
KKR Income Opportunities Fund 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 | KIO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 4.59% | 0.04% | |
| AUM | $488M | $79.0B | |
| Dividend Yield | 12.12% | 2.86% | |
| Holdings | 327 | 568 | |
| YTD Return | +4.35% | +16.16% | |
| 1Y Return | -0.57% | +26.05% | |
| 3Y Return (annualized) | +9.35% | +18.43% | |
| 5Y Return (annualized) | +3.47% | +12.21% | |
| Volatility (annualized) | 14.3% | 14.6% | |
| Max Drawdown | -54.5% | -58.8% | |
| Fund Family | KKR Funds | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 26, 2013 | Nov 10, 2006 |
KIO vs VYM Performance
KKR Income Opportunities Fund (KIO) is a ETF from KKR Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KIO returned -0.57% while VYM returned +26.05%. Year to date, KIO is up 4.35% versus a gain of 16.16% for VYM.
Over three years, KIO compounded at +9.35% per year against +18.43% for VYM; over five years the annualized figures are +3.47% and +12.21% respectively. Across the full 13-year window we track, VYM has the edge at +7.09% annualized vs +0.13%. 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 14.3% for KIO. 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 -54.5% for KIO 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KIO charges 4.59% per year while VYM charges 0.04%. On a $10,000 position that is $459 vs $4 annually, a gap of $455 per year that compounds over a long holding period. On income, KIO currently yields 12.12% against 2.86% for VYM.
Holdings Overlap
KIO and VYM share 0 holdings out of 655 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, KIO or VYM?
KIO has an expense ratio of 4.59% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $455 per year of difference.
Which performed better, KIO or VYM?
Over the past year KIO returned -0.57% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (13 years), KIO annualized +0.13% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, KIO or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 14.3% for KIO. Worst drawdown: KIO -54.5% vs VYM -58.8%.
Should I hold both KIO and VYM?
KIO and VYM have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KIO and VYM?
KIO and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 655 unique securities.
Which pays a higher dividend, KIO or VYM?
KIO yields 12.12% while VYM yields 2.86%, so KIO currently pays the higher dividend yield.
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