IQQQ 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

MetricIQQQVYMWinner
Expense Ratio0.55%0.04%
AUM$391M$79.0B
Dividend Yield4.47%2.86%
Holdings108568
YTD Return+14.40%+15.45%
1Y Return+25.74%+26.05%
3Y Return (annualized)-+17.96%
5Y Return (annualized)-+12.54%
Volatility (annualized)16.9%14.6%
Max Drawdown-21.5%-58.8%
Fund FamilyProSharesVanguard (US)
CategoryEquityEquity
InceptionMar 18, 2024Nov 10, 2006

IQQQ vs VYM Performance

Proshares Nasdaq-100 High Income ETF (IQQQ) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IQQQ returned +25.74% while VYM returned +26.05%. Year to date, IQQQ is up 14.40% versus a gain of 15.45% for VYM.

Risk: Volatility and Drawdowns

IQQQ has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 14.6% for VYM. 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 -21.5% for IQQQ 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IQQQ charges 0.55% per year while VYM charges 0.04%. On a $10,000 position that is $55 vs $4 annually, a gap of $51 per year that compounds over a long holding period. On income, IQQQ currently yields 4.47% against 2.86% for VYM.

Holdings Overlap

14.2%overlap

IQQQ and VYM share 27 holdings out of 635 unique holdings combined, representing a 14.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IQQQWeight in VYMDifference
AVGO2.36%6.47%4.11%
WMT1.99%2.44%0.45%
CSCO1.65%1.39%0.26%
TXNProProPro
PEPProProPro
AMGNProProPro
ADIProProPro
GILDProProPro
QCOMProProPro
STXProProPro
See all 10 holdings IQQQ shares with VYM
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, IQQQ or VYM?

IQQQ has an expense ratio of 0.55% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $51 per year of difference.

Which performed better, IQQQ or VYM?

Over the past year IQQQ returned +25.74% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), IQQQ annualized +18.41% vs +7.06% for VYM. Past performance does not guarantee future results.

Which is riskier, IQQQ or VYM?

IQQQ has been the more volatile fund at 16.9% annualized versus 14.6% for VYM. Worst drawdown: IQQQ -21.5% vs VYM -58.8%.

Should I hold both IQQQ and VYM?

IQQQ and VYM have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IQQQ and VYM?

IQQQ and VYM share 27 common holdings with a 14.2% weight overlap. Combined, they hold 635 unique securities.

Which pays a higher dividend, IQQQ or VYM?

IQQQ yields 4.47% while VYM yields 2.86%, so IQQQ currently pays the higher dividend yield.

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