IPPP vs VYM
Preferred Plus ETF vs Vanguard High Dividend Yield ETF
Which is better, IPPP or VYM?
Preferred Stock against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IPPP | VYM |
|---|---|---|
| Expense Ratio | 1.02% | 0.04%Best |
| AUM | $12M | $78.9B |
| Dividend Yield | 5.62% | 2.37% |
| Holdings | 98 | 608 |
| Volatility (annualized) | 15.8% | 15.1%Best |
| Max Drawdown | -22.3% | -15.8%Best |
| $10,000 over 3.5 years | $10,758 | $14,165Best |
| Fund Family | Innovative Portfolios LLC | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Preferred Stock | Large Cap Value |
| Inception | Dec 24, 2018 | Nov 10, 2006 |
Not shown on this pair: YTD Return, 1Y Return, 3Y Return (annualized), 5Y Return (annualized), Top 10 Weight.
The two price series end 415 days apart, so a return over any period would be measuring two different stretches of market. Those rows are withheld. IPPP has data through Aug 25, 2025 and VYM through Oct 14, 2026.
Volatility and max drawdown, and the $10,000 over 3.5 years row, are measured over the window both funds cover: Mar 7, 2022 to Aug 25, 2025 (3.5 years).
Risk: Volatility and Drawdowns
IPPP has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 15.1% 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 -22.3% for IPPP and -15.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IPPP charges 1.02% per year while VYM charges 0.04%. On a $10,000 position that is $102 vs $4 annually, a gap of $98 per year that compounds over a long holding period. On income, IPPP currently yields 5.62% against 2.37% for VYM.
You are not choosing between two funds in isolation.
Whichever of IPPP and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IPPP or VYM?
IPPP has an expense ratio of 1.02% while VYM charges 0.04%. VYM is the cheaper option, by $98 a year on a $10,000 investment.
Which is riskier, IPPP or VYM?
IPPP has been the more volatile fund at 15.8% annualized versus 15.1% for VYM. Worst drawdown: IPPP -22.3% vs VYM -15.8%.
Should I hold both IPPP and VYM?
IPPP and VYM have a monthly-return correlation of 0.65, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IPPP or VYM?
IPPP yields 5.62% while VYM yields 2.37%, so IPPP currently pays the higher dividend yield.
Is VYM better than IPPP?
VYM has a lower expense ratio. VYM led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.