VIPIX vs VYM
Vanguard Inflation Protected Securities Fund Insti Shs 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 | VIPIX | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.04% | |
| AUM | $12.5B | $79.0B | |
| Dividend Yield | 3.54% | 2.86% | |
| Holdings | 63 | 568 | |
| YTD Return | -1.07% | +16.16% | |
| 1Y Return | -3.24% | +26.05% | |
| 3Y Return (annualized) | -0.50% | +18.43% | |
| 5Y Return (annualized) | -4.77% | +12.21% | |
| Volatility (annualized) | 6.7% | 14.6% | |
| Max Drawdown | -24.5% | -58.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 12, 2003 | Nov 10, 2006 |
VIPIX vs VYM Performance
Vanguard Inflation Protected Securities Fund Insti Shs (VIPIX) is a mutual fund from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VIPIX returned -3.24% while VYM returned +26.05%. Year to date, VIPIX is down 1.07% versus a gain of 16.16% for VYM.
Over three years, VIPIX compounded at -0.50% per year against +18.43% for VYM; over five years the annualized figures are -4.77% and +12.21% respectively. Across the full 5-year window we track, VYM has the edge at +7.09% annualized vs -4.77%. 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 6.7% for VIPIX. 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 -24.5% for VIPIX 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VIPIX charges 0.07% per year while VYM charges 0.04%. On a $10,000 position that is $7 vs $4 annually, a gap of $3 per year that compounds over a long holding period. On income, VIPIX currently yields 3.54% against 2.86% for VYM.
Holdings Overlap
VIPIX and VYM share 0 holdings out of 613 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, VIPIX or VYM?
VIPIX has an expense ratio of 0.07% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VIPIX or VYM?
Over the past year VIPIX returned -3.24% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), VIPIX annualized -4.77% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, VIPIX or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.7% for VIPIX. Worst drawdown: VIPIX -24.5% vs VYM -58.8%.
Should I hold both VIPIX and VYM?
VIPIX and VYM have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VIPIX and VYM?
VIPIX and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 613 unique securities.
Which pays a higher dividend, VIPIX or VYM?
VIPIX yields 3.54% while VYM yields 2.86%, so VIPIX currently pays the higher dividend yield.
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