USIG vs VYM

USIG vs VYM

Which is better, USIG or VYM?

Long Term Mid Quality against Large Cap Value.

VYM led over 1Y, 3Y, 5Y and the full window.

Lower Fees: TiedHigher Returns: 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

MetricUSIGVYM
Expense Ratio0.04%Tie0.04%Tie
AUM$17.7B$81.6B
Dividend Yield4.84%2.22%
Holdings11,462613
YTD Return-1.37%+12.87%Best
1Y Return-1.17%+17.25%Best
3Y Return (annualized)+5.10%+17.66%Best
5Y Return (annualized)-0.22%+11.98%Best
Volatility (annualized)7.3%Best15.4%
Max Drawdown-21.6%Best-35.7%
$10,000 over 5 years$9,890$17,608Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
StyleLong Term Mid QualityLarge Cap Value
InceptionJan 5, 2007Nov 10, 2006

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Aug 1, 2018 to Sep 15, 2026 (8.1 years).

USIG 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 8.1 years both funds cover.

USIG vs VYM Performance

iShares Broad USD Investment Grade Corporate Bond ETF (USIG) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year USIG returned -1.17% while VYM returned +17.25%. Year to date, USIG is down 1.37% versus a gain of 12.87% for VYM.

Over three years, USIG compounded at +5.10% per year against +17.66% for VYM; over five years the annualized figures are -0.22% and +11.98% respectively. Across the full 8-year window we track, VYM has the edge at +10.22% annualized vs +1.67%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 15.4% compared with 7.3% for USIG. 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 -21.6% for USIG 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 0.53. They move together some of the time, and apart the rest.

Fees and Cost Over Time

USIG charges 0.04% per year while VYM charges 0.04%. On a $10,000 position that is $4 vs $4 annually. On income, USIG currently yields 4.84% against 2.22% for VYM.

Holdings Overlap

VYM already in USIG0.3%

At least 0.3% of VYM's money is in holdings USIG also owns.

Stated as a floor: for USIG, our book for it covers 17.5% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 1,012 positions we hold weights for in USIG and 557 in VYM, against full books of 11,462 and 613.

Top Shared Holdings

StockWeight in USIGWeight in VYMDifference
TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#5855580.07%0.34%0.27%

You are not choosing between two funds in isolation.

Whichever of USIG and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

USIGVYM

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Frequently Asked Questions

Which is cheaper, USIG or VYM?

USIG has an expense ratio of 0.04% while VYM charges 0.04%. At the precision these are quoted to, they cost the same.

Which performed better, USIG or VYM?

Over the past year USIG returned -1.17% vs +17.25% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), USIG annualized +1.67% vs +10.22% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, USIG or VYM?

VYM has been the more volatile fund at 15.4% annualized versus 7.3% for USIG. Worst drawdown: USIG -21.6% vs VYM -35.7%.

Should I hold both USIG and VYM?

USIG and VYM have a monthly-return correlation of 0.53, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, USIG or VYM?

USIG yields 4.84% while VYM yields 2.22%, so USIG currently pays the higher dividend yield.

Is VYM better than USIG?

VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.