IYG vs VYM
iShares US Financial Services ETF vs Vanguard High Dividend Yield ETF
Which is better, IYG or VYM?
Each has led over a different period.
VYM has a lower expense ratio. IYG led over 3Y, VYM over 1Y, 5Y and the full window. VYM is less concentrated, with 25.8% 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 | VYM |
|---|---|---|
| Expense Ratio | 0.37% | 0.04%Best |
| AUM | $2.2B | $78.9B |
| Dividend Yield | 1.14% | 2.37% |
| Holdings | 102 | 608 |
| YTD Return | -0.85% | +11.83%Best |
| 1Y Return | +4.56% | +15.96%Best |
| 3Y Return (annualized) | +22.36%Best | +18.60% |
| 5Y Return (annualized) | +8.77% | +11.51%Best |
| Volatility (annualized) | 23.3% | 14.6%Best |
| Max Drawdown | -82.9% | -58.8%Best |
| $10,000 over 5 years | $15,225 | $17,241Best |
| Top 10 Weight | 63.6% | 25.8%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Jun 12, 2000 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Oct 14, 2026 (19.9 years).
IYG vs VYM 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 19.9 years both funds cover.
IYG vs VYM Performance
iShares US Financial Services ETF (IYG) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year IYG returned +4.56% while VYM returned +15.96%. Year to date, IYG is down 0.85% versus a gain of 11.83% for VYM.
Over three years, IYG compounded at +22.36% per year against +18.60% for VYM; over five years the annualized figures are +8.77% and +11.51% respectively. Across the full 20-year window we track, VYM has the edge at +6.82% annualized vs +4.21%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYG has been the more volatile fund, with annualized monthly volatility of 23.3% 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 -82.9% for IYG and -58.8% 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYG charges 0.37% per year while VYM charges 0.04%. On a $10,000 position that is $37 vs $4 annually, a gap of $33 per year that compounds over a long holding period. On income, IYG currently yields 1.14% against 2.37% for VYM.
Holdings Overlap
55.1% of IYG's money is in holdings VYM also owns. 16.5% of VYM's money is in holdings IYG also owns.
The two portfolios partly overlap.
73 positions in common, counted across the 98 positions we hold weights for in IYG and 602 in VYM, against full books of 102 and 608.
What only one of them owns
Measured across the 98 and 602 positions we hold weights for.
VYM holds 500 positions IYG does not, 81.3% of the fund.
Largest: AVGO 6.94%, XOM 2.70%, JNJ 2.58%, ABBV 1.83%, CSCO 1.76%
Top Shared Holdings
| Stock | Weight in IYG | Weight in VYM | Difference |
|---|---|---|---|
| JPMJpmorgan Chase & Co | 13.02% | 3.83% | 9.19% |
| BACBank Amer Secs Inc | 5.14% | 1.65% | 3.49% |
| GSGoldman Sachs & Co Llc | 3.84% | 1.12% | 2.72% |
| WFCWells Fargo And Co Preferred Stock Var | 3.57% | 1.07% | 2.50% |
| MSMorgan Stanley | 3.30% | 0.96% | 2.34% |
| CCitigroup Inc. | 3.13% | 0.90% | 2.23% |
| BLKBlackrock Inc | 2.25% | 0.71% | 1.54% |
| COFCapital One Financial Corporation (usd) | 1.75% | 0.54% | 1.21% |
| CMECme Group Inc. | 1.40% | 0.42% | 0.98% |
| USBUS Bancorp | 1.31% | 0.39% | 0.92% |
55.1% of IYG is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, IYG or VYM?
IYG has an expense ratio of 0.37% while VYM charges 0.04%. VYM is the cheaper option, by $33 a year on a $10,000 investment.
Which performed better, IYG or VYM?
Over the past year IYG returned +4.56% vs +15.96% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), IYG annualized +4.21% vs +6.82% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYG or VYM?
IYG has been the more volatile fund at 23.3% annualized versus 14.6% for VYM. Worst drawdown: IYG -82.9% vs VYM -58.8%.
Should I hold both IYG and VYM?
IYG and VYM have a monthly-return correlation of 0.87, 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 VYM?
55.1% of IYG's money is in holdings VYM also owns. 16.5% of VYM's is in holdings IYG also owns. They hold 73 positions in common, counted across the 98 positions we hold weights for in IYG and 602 in VYM.
Which pays a higher dividend, IYG or VYM?
IYG yields 1.14% while VYM yields 2.37%, so VYM currently pays the higher dividend yield.
Is VYM better than IYG?
VYM has a lower expense ratio. IYG led over 3Y, VYM over 1Y, 5Y and the full window. VYM is less concentrated, with 25.8% 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.