QAI vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 568 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricQAIVYMWinner
Expense Ratio0.88%0.04%
AUM$1.0B$79.0B
Dividend Yield3.97%2.86%
Holdings133568
YTD Return+8.80%+16.78%
1Y Return+13.10%+24.43%
3Y Return (annualized)+8.86%+18.60%
5Y Return (annualized)+4.35%+12.30%
Volatility (annualized)5.2%14.6%
Max Drawdown-14.9%-58.8%
Fund FamilyINDEXIQ ETF TRUSTVanguard (US)
CategoryAlternativeEquity
InceptionMar 25, 2009Nov 10, 2006

QAI vs VYM Performance

NYLI Hedge Multi-Strategy Tracker ETF (QAI) is a ETF from INDEXIQ ETF TRUST and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year QAI returned +13.10% while VYM returned +24.43%. Year to date, QAI is up 8.80% versus a gain of 16.78% for VYM.

Over three years, QAI compounded at +8.86% per year against +18.60% for VYM; over five years the annualized figures are +4.35% and +12.30% respectively. Across the full 17-year window we track, VYM has the edge at +7.11% annualized vs +3.45%. 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 5.2% for QAI. 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 -14.9% for QAI 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 0.79. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QAI charges 0.88% per year while VYM charges 0.04%. On a $10,000 position that is $88 vs $4 annually, a gap of $84 per year that compounds over a long holding period. On income, QAI currently yields 3.97% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

QAI and VYM share 0 holdings out of 591 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, QAI or VYM?

QAI has an expense ratio of 0.88% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $84 per year of difference.

Which performed better, QAI or VYM?

Over the past year QAI returned +13.10% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (17 years), QAI annualized +3.45% vs +7.11% for VYM. Past performance does not guarantee future results.

Which is riskier, QAI or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 5.2% for QAI. Worst drawdown: QAI -14.9% vs VYM -58.8%.

Should I hold both QAI and VYM?

QAI and VYM have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QAI and VYM?

QAI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 591 unique securities.

Which pays a higher dividend, QAI or VYM?

QAI yields 3.97% while VYM yields 2.86%, so QAI currently pays the higher dividend yield.

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