INCM vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricINCMVYMWinner
Expense Ratio0.38%0.04%
AUM$1.7B$79.0B
Dividend Yield5.04%2.86%
Holdings357568
YTD Return+7.71%+15.45%
1Y Return+14.28%+26.05%
3Y Return (annualized)+11.26%+17.96%
5Y Return (annualized)-+12.54%
Volatility (annualized)7.2%14.6%
Max Drawdown-7.8%-58.8%
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryAllocation/BalancedEquity
InceptionJun 6, 2023Nov 10, 2006

INCM vs VYM Performance

Franklin Income Focus ETF (INCM) is a ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year INCM returned +14.28% while VYM returned +26.05%. Year to date, INCM is up 7.71% versus a gain of 15.45% for VYM.

Over three years, INCM compounded at +11.26% per year against +17.96% for VYM. Across the full 3-year window we track, INCM has the edge at +10.89% annualized vs +7.06%. 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 7.2% for INCM. 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 -7.8% for INCM 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

INCM charges 0.38% per year while VYM charges 0.04%. On a $10,000 position that is $38 vs $4 annually, a gap of $34 per year that compounds over a long holding period. On income, INCM currently yields 5.04% against 2.86% for VYM.

Holdings Overlap

18.0%overlap

INCM and VYM share 41 holdings out of 775 unique holdings combined, representing a 18.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in INCMWeight in VYMDifference
XOM1.50%2.83%1.33%
PG1.86%1.72%0.14%
JPM0.00%3.36%3.36%
CVXProProPro
VZProProPro
PEPProProPro
KOProProPro
BACProProPro
PMProProPro
CSCOProProPro
See all 10 holdings INCM shares with VYM
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Frequently Asked Questions

Which is cheaper, INCM or VYM?

INCM has an expense ratio of 0.38% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $34 per year of difference.

Which performed better, INCM or VYM?

Over the past year INCM returned +14.28% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), INCM annualized +10.89% vs +7.06% for VYM. Past performance does not guarantee future results.

Which is riskier, INCM or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 7.2% for INCM. Worst drawdown: INCM -7.8% vs VYM -58.8%.

Should I hold both INCM and VYM?

INCM and VYM have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between INCM and VYM?

INCM and VYM share 41 common holdings with a 18.0% weight overlap. Combined, they hold 775 unique securities.

Which pays a higher dividend, INCM or VYM?

INCM yields 5.04% while VYM yields 2.86%, so INCM currently pays the higher dividend yield.

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