USIG vs VYM
USIG vs VYM
iShares Broad USD Investment Grade Corporate Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM delivered stronger 1-year returns. USIG offers more diversification with 9966 holdings.
Side-by-Side Comparison
| Metric | USIG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.04% | |
| AUM | $17.3B | $79.0B | |
| Dividend Yield | 4.72% | 2.86% | |
| Holdings | 11,462 | 568 | |
| YTD Return | -0.21% | +15.45% | |
| 1Y Return | +2.13% | +26.05% | |
| 3Y Return (annualized) | +5.34% | +17.96% | |
| 5Y Return (annualized) | +0.06% | +12.54% | |
| Volatility (annualized) | 7.4% | 14.6% | |
| Max Drawdown | -21.6% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | Nov 10, 2006 |
USIG vs VYM Performance
iShares Broad USD Investment Grade Corporate Bond ETF (USIG) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year USIG returned +2.13% while VYM returned +26.05%. Year to date, USIG is down 0.21% versus a gain of 15.45% for VYM.
Over three years, USIG compounded at +5.34% per year against +17.96% for VYM; over five years the annualized figures are +0.06% and +12.54% respectively. Across the full 8-year window we track, VYM has the edge at +7.06% annualized vs +1.85%. 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 7.4% for USIG. 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 -21.6% for USIG 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
USIG charges 0.04% per year while VYM charges 0.04%. On a $10,000 position that is $4 vs $4 annually. On income, USIG currently yields 4.72% against 2.86% for VYM.
Holdings Overlap
USIG and VYM share 8 holdings out of 10516 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in USIG | Weight in VYM | Difference |
|---|---|---|---|
| DUK | 0.01% | 0.45% | 0.44% |
| KDP | 0.01% | 0.17% | 0.16% |
| ADM | 0.00% | 0.14% | 0.14% |
| HUBB | Pro | Pro | Pro |
| CNP | Pro | Pro | Pro |
| RPRX | Pro | Pro | Pro |
| SF | Pro | Pro | Pro |
| GMT | Pro | Pro | Pro |
See all 8 holdings USIG shares with VYM Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, USIG or VYM?
USIG has an expense ratio of 0.04% while VYM charges 0.04%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, USIG or VYM?
Over the past year USIG returned +2.13% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (8 years), USIG annualized +1.85% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, USIG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.4% for USIG. Worst drawdown: USIG -21.6% vs VYM -58.8%.
Should I hold both USIG and VYM?
USIG and VYM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between USIG and VYM?
USIG and VYM share 8 common holdings with a 0.0% weight overlap. Combined, they hold 10516 unique securities.
Which pays a higher dividend, USIG or VYM?
USIG yields 4.72% while VYM yields 2.86%, so USIG currently pays the higher dividend yield.
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