IBM vs. VYM
IBM (International Business Machines Corporation) is a stock, while VYM (Vanguard High Dividend Yield ETF) is Dividend fund tracking the FTSE High Dividend Yield Index. Over the past 10 years, IBM returned 7.64%/yr vs 11.36%/yr for VYM. A 0.64 correlation means they provide meaningful diversification when combined.
Performance
IBM vs. VYM - Performance Comparison
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Returns By Period
In the year-to-date period, IBM achieves a -27.15% return, which is significantly lower than VYM's 12.42% return. Over the past 10 years, IBM has underperformed VYM with an annualized return of 7.64%, while VYM has yielded a comparatively higher 11.36% annualized return.
IBM
- 1D
- 0.16%
- 1M
- -14.49%
- 6M
- -29.40%
- YTD
- -27.15%
- 1Y
- -23.58%
- 3Y*
- 19.09%
- 5Y*
- 13.91%
- 10Y*
- 7.64%
- ALL TIME*
- 7.00%
VYM
- 1D
- -0.47%
- 1M
- 0.76%
- 6M
- 8.38%
- YTD
- 12.42%
- 1Y
- 21.30%
- 3Y*
- 16.51%
- 5Y*
- 11.99%
- 10Y*
- 11.36%
- ALL TIME*
- 9.30%
IBM vs. VYM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IBM International Business Machines Corporation | -27.15% | 38.23% | 39.27% | 21.85% | 10.64% | 16.65% | -1.16% | 23.58% | -22.56% | -3.99% |
VYM Vanguard High Dividend Yield ETF | 12.42% | 15.42% | 17.60% | 6.57% | -0.43% | 26.20% | 1.15% | 24.06% | -5.92% | 16.42% |
Correlation
The correlation between IBM and VYM is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.33 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.43 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.53 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.61 |
Correlation (All Time) Calculated using the full available price history since Nov 16, 2006 | 0.64 |
Over the past year, the correlation between IBM and VYM has dropped to 0.33 - well below their long-term average of 0.64, suggesting their price drivers have been diverging.
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Return for Risk
IBM vs. VYM — Risk / Return Rank
IBM
VYM
IBM vs. VYM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for International Business Machines Corporation (IBM) and Vanguard High Dividend Yield ETF (VYM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| IBM | VYM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.59 | ||
| Sortino ratioReturn per unit of downside risk | -3.42 | ||
| Omega ratioGain probability vs. loss probability | 0.94 | 1.38 | -0.44 |
| Calmar ratioReturn relative to maximum drawdown | -0.66 | 3.20 | -3.86 |
| Martin ratioReturn relative to average drawdown | -1.53 | 11.87 | -13.40 |
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Drawdowns
IBM vs. VYM - Drawdown Comparison
The maximum IBM drawdown since its inception was -69.40%, which is greater than VYM's maximum drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for IBM and VYM.
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Drawdown Indicators
| IBM | VYM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -69.40% | -56.98% | -12.42% |
Max Drawdown (1Y)Largest decline over 1 year | -35.85% | -6.69% | -29.16% |
Max Drawdown (3Y)Largest decline over 3 years | -35.85% | -14.46% | -21.39% |
Max Drawdown (5Y)Largest decline over 5 years | -35.85% | -15.84% | -20.01% |
Max Drawdown (10Y)Largest decline over 10 years | -40.59% | -35.21% | -5.38% |
Current DrawdownCurrent decline from peak | -35.30% | -1.02% | -34.28% |
Average DrawdownAverage peak-to-trough decline | -20.12% | -7.15% | -12.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 15.44% | 1.80% | +13.64% |
Volatility
IBM vs. VYM - Volatility Comparison
International Business Machines Corporation (IBM) has a higher volatility of 32.02% compared to Vanguard High Dividend Yield ETF (VYM) at 1.78%. This indicates that IBM's price experiences larger fluctuations and is considered to be riskier than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IBM | VYM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 32.02% | 1.78% | +30.24% |
Volatility (6M)Calculated over the trailing 6-month period | 46.34% | 7.49% | +38.85% |
Volatility (1Y)Calculated over the trailing 1-year period | 48.36% | 10.22% | +38.14% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 29.86% | 13.87% | +15.99% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.97% | 16.29% | +11.68% |
Dividends
IBM vs. VYM - Dividend Comparison
IBM's dividend yield for the trailing twelve months is around 3.16%, more than VYM's 2.28% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBM International Business Machines Corporation | 3.16% | 2.27% | 3.03% | 4.05% | 4.68% | 4.74% | 5.17% | 4.80% | 5.46% | 3.85% | 3.31% | 3.63% |
VYM Vanguard High Dividend Yield ETF | 2.28% | 2.44% | 2.74% | 3.12% | 3.01% | 2.76% | 3.18% | 3.03% | 3.40% | 2.80% | 2.91% | 3.22% |
Frequently Asked Questions
IBM and VYM have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IBM has higher volatility (32.02%) compared to VYM (1.78%). In terms of maximum drawdown, IBM dropped -69.40% vs VYM's -56.98%.
VYM currently has the higher Sharpe Ratio (2.10 vs -0.49), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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