IYG vs VTI
iShares US Financial Services ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, IYG or VTI?
Large Cap Value against Large Cap Blend.
VTI has a lower expense ratio. IYG led over 3Y, VTI over 1Y, 5Y and the full window. VTI is less concentrated, with 33.5% of the fund in its ten largest positions against 63.6%.
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 | IYG | VTI |
|---|---|---|
| Expense Ratio | 0.37% | 0.03%Best |
| AUM | $2.2B | $689.2B |
| Dividend Yield | 1.14% | 1.06% |
| Holdings | 102 | 3,524 |
| YTD Return | -0.85% | +13.02%Best |
| 1Y Return | +4.56% | +16.63%Best |
| 3Y Return (annualized) | +22.36%Best | +21.97% |
| 5Y Return (annualized) | +8.77% | +11.99%Best |
| Volatility (annualized) | 21.6% | 15.3%Best |
| Max Drawdown | -82.9% | -56.6%Best |
| $10,000 over 5 years | $15,225 | $17,616Best |
| Top 10 Weight | 63.6% | 33.5%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Jun 12, 2000 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: May 31, 2001 to Oct 14, 2026 (25.4 years).
IYG vs VTI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 25.4 years both funds cover.
IYG vs VTI Performance
iShares US Financial Services ETF (IYG) is an ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year IYG returned +4.56% while VTI returned +16.63%. Year to date, IYG is down 0.85% versus a gain of 13.02% for VTI.
Over three years, IYG compounded at +22.36% per year against +21.97% for VTI; over five years the annualized figures are +8.77% and +11.99% respectively. Across the full 25-year window we track, VTI has the edge at +8.04% annualized vs +4.50%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYG has been the more volatile fund, with annualized monthly volatility of 21.6% compared with 15.3% for VTI. 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 -82.9% for IYG and -56.6% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYG charges 0.37% per year while VTI charges 0.03%. On a $10,000 position that is $37 vs $3 annually, a gap of $34 per year that compounds over a long holding period. On income, IYG currently yields 1.14% against 1.06% for VTI.
Holdings Overlap
84.7% of IYG's money is in holdings VTI also owns. 8.4% of VTI's money is in holdings IYG also owns.
Most of IYG is already inside VTI. Owning both mostly buys the same companies twice.
94 positions in common, counted across the 98 positions we hold weights for in IYG and 3,441 in VTI, against full books of 102 and 3,524.
What only one of them owns
Measured across the 98 and 3,441 positions we hold weights for.
VTI holds 1,064 positions IYG does not, 89.2% of the fund.
Largest: NVDA 6.88%, AAPL 6.30%, MSFT 5.11%, AMZN 3.41%, GOOGL 2.70%
Top Shared Holdings
| Stock | Weight in IYG | Weight in VTI | Difference |
|---|---|---|---|
| JPMJpmorgan Chase & Co | 13.02% | 1.29% | 11.73% |
| VVisa Inc | 9.01% | 0.85% | 8.16% |
| MAMastercard Inc | 6.54% | 0.63% | 5.91% |
| BACBank Amer Secs Inc | 5.14% | 0.54% | 4.60% |
| GSGoldman Sachs & Co Llc | 3.84% | 0.38% | 3.46% |
| WFCWells Fargo And Co Preferred Stock Var | 3.57% | 0.36% | 3.21% |
| MSMorgan Stanley | 3.30% | 0.34% | 2.96% |
| CCitigroup Inc. | 3.13% | 0.30% | 2.83% |
| SCHWSchwab Strategic T | 2.35% | 0.25% | 2.10% |
| AXPAmerican Express Co. | 2.34% | 0.24% | 2.10% |
84.7% of IYG is already inside VTI.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IYG or VTI?
IYG has an expense ratio of 0.37% while VTI charges 0.03%. VTI is the cheaper option, by $34 a year on a $10,000 investment.
Which performed better, IYG or VTI?
Over the past year IYG returned +4.56% vs +16.63% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), IYG annualized +4.50% vs +8.04% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYG or VTI?
IYG has been the more volatile fund at 21.6% annualized versus 15.3% for VTI. Worst drawdown: IYG -82.9% vs VTI -56.6%.
Should I hold both IYG and VTI?
IYG and VTI have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IYG and VTI?
84.7% of IYG's money is in holdings VTI also owns. 8.4% of VTI's is in holdings IYG also owns. They hold 94 positions in common, counted across the 98 positions we hold weights for in IYG and 3,441 in VTI.
Which pays a higher dividend, IYG or VTI?
IYG yields 1.14% while VTI yields 1.06%, so IYG currently pays the higher dividend yield.
Is VTI better than IYG?
VTI has a lower expense ratio. IYG led over 3Y, VTI over 1Y, 5Y and the full window. VTI is less concentrated, with 33.5% of the fund in its ten largest positions against 63.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.