LOCT vs VYM
Innovator Premium Income 15 Buffer ETF - October 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 | LOCT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.04% | |
| AUM | $11M | $79.0B | |
| Dividend Yield | 5.15% | 2.86% | |
| Holdings | 8 | 568 | |
| YTD Return | +0.10% | +16.10% | |
| 1Y Return | +1.96% | +25.99% | |
| 3Y Return (annualized) | - | +18.29% | |
| 5Y Return (annualized) | - | +12.35% | |
| Volatility (annualized) | 6.1% | 14.6% | |
| Max Drawdown | -10.5% | -58.8% | |
| Fund Family | Innovator ETFs Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Oct 2, 2023 | Nov 10, 2006 |
LOCT vs VYM Performance
Innovator Premium Income 15 Buffer ETF - October (LOCT) is a ETF from Innovator ETFs Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year LOCT returned +1.96% while VYM returned +25.99%. Year to date, LOCT is up 0.10% versus a gain of 16.10% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 6.1% for LOCT. 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 -10.5% for LOCT 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 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LOCT charges 0.79% per year while VYM charges 0.04%. On a $10,000 position that is $79 vs $4 annually, a gap of $75 per year that compounds over a long holding period. On income, LOCT currently yields 5.15% against 2.86% for VYM.
Holdings Overlap
LOCT and VYM share 0 holdings out of 560 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, LOCT or VYM?
LOCT has an expense ratio of 0.79% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $75 per year of difference.
Which performed better, LOCT or VYM?
Over the past year LOCT returned +1.96% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), LOCT annualized +0.18% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, LOCT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.1% for LOCT. Worst drawdown: LOCT -10.5% vs VYM -58.8%.
Should I hold both LOCT and VYM?
LOCT and VYM have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LOCT and VYM?
LOCT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 560 unique securities.
Which pays a higher dividend, LOCT or VYM?
LOCT yields 5.15% while VYM yields 2.86%, so LOCT currently pays the higher dividend yield.
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