VTN vs VYM
Invesco Trust for Investment Grade New York Municipals 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 613 holdings.
Side-by-Side Comparison
| Metric | VTN | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 2.69% | 0.04% | |
| AUM | $3,218.67 | $81.6B | |
| Dividend Yield | 7.78% | 2.24% | |
| Holdings | 197 | 613 | |
| YTD Return | -4.11% | +15.29% | |
| 1Y Return | +11.80% | +22.23% | |
| 3Y Return (annualized) | +9.45% | +18.81% | |
| 5Y Return (annualized) | +0.46% | +12.14% | |
| Volatility (annualized) | 13.7% | 14.5% | |
| Max Drawdown | -100.0% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Mar 27, 1992 | Nov 10, 2006 |
VTN vs VYM Performance
Invesco Trust for Investment Grade New York Municipals (VTN) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year VTN returned +11.80% while VYM returned +22.23%. Year to date, VTN is down 4.11% versus a gain of 15.29% for VYM.
Over three years, VTN compounded at +9.45% per year against +18.81% for VYM; over five years the annualized figures are +0.46% and +12.14% respectively. Across the full 20-year window we track, VYM has the edge at +7.02% annualized vs -0.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 13.7% for VTN. 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 -100.0% for VTN 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTN charges 2.69% per year while VYM charges 0.04%. On a $10,000 position that is $269 vs $4 annually, a gap of $265 per year that compounds over a long holding period. On income, VTN currently yields 7.78% against 2.24% for VYM.
Holdings Overlap
VTN and VYM share 0 holdings out of 604 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, VTN or VYM?
VTN has an expense ratio of 2.69% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $265 per year of difference.
Which performed better, VTN or VYM?
Over the past year VTN returned +11.80% vs +22.23% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VTN annualized -0.04% vs +7.02% for VYM. Past performance does not guarantee future results.
Which is riskier, VTN or VYM?
VYM has been the more volatile fund at 14.5% annualized versus 13.7% for VTN. Worst drawdown: VTN -100.0% vs VYM -58.8%.
Should I hold both VTN and VYM?
VTN and VYM have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTN and VYM?
VTN and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 604 unique securities.
Which pays a higher dividend, VTN or VYM?
VTN yields 7.78% while VYM yields 2.24%, so VTN currently pays the higher dividend yield.
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