VRIG vs VYM
Invesco Variable Rate Investment Grade ETF 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 | VRIG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.04% | |
| AUM | $1.8B | $79.0B | |
| Dividend Yield | 4.71% | 2.86% | |
| Holdings | 364 | 568 | |
| YTD Return | +2.62% | +16.16% | |
| 1Y Return | +4.65% | +26.05% | |
| 3Y Return (annualized) | +5.73% | +18.43% | |
| 5Y Return (annualized) | +4.57% | +12.21% | |
| Volatility (annualized) | 3.4% | 14.6% | |
| Max Drawdown | -14.3% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 20, 2016 | Nov 10, 2006 |
VRIG vs VYM Performance
Invesco Variable Rate Investment Grade ETF (VRIG) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VRIG returned +4.65% while VYM returned +26.05%. Year to date, VRIG is up 2.62% versus a gain of 16.16% for VYM.
Over three years, VRIG compounded at +5.73% per year against +18.43% for VYM; over five years the annualized figures are +4.57% and +12.21% respectively. Across the full 10-year window we track, VYM has the edge at +7.09% annualized vs +2.37%. 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 3.4% for VRIG. 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 -14.3% for VRIG 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VRIG charges 0.30% per year while VYM charges 0.04%. On a $10,000 position that is $30 vs $4 annually, a gap of $26 per year that compounds over a long holding period. On income, VRIG currently yields 4.71% against 2.86% for VYM.
Holdings Overlap
VRIG and VYM share 0 holdings out of 864 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, VRIG or VYM?
VRIG has an expense ratio of 0.30% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, VRIG or VYM?
Over the past year VRIG returned +4.65% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), VRIG annualized +2.37% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, VRIG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 3.4% for VRIG. Worst drawdown: VRIG -14.3% vs VYM -58.8%.
Should I hold both VRIG and VYM?
VRIG and VYM have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VRIG and VYM?
VRIG and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 864 unique securities.
Which pays a higher dividend, VRIG or VYM?
VRIG yields 4.71% while VYM yields 2.86%, so VRIG currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.