IYH vs SPY
iShares US Healthcare ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, IYH or SPY?
Each has led over a different period.
SPY has a lower expense ratio. IYH led over 1Y and the full window, SPY over 3Y and 5Y. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 58.6%.
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 | IYH | SPY |
|---|---|---|
| Expense Ratio | 0.37% | 0.09%Best |
| AUM | $4.2B | $823.2B |
| Dividend Yield | 1.12% | 0.99% |
| Holdings | 104 | 1,515 |
| YTD Return | +12.87% | +13.53%Best |
| 1Y Return | +23.50%Best | +17.47% |
| 3Y Return (annualized) | +11.38% | +22.36%Best |
| 5Y Return (annualized) | +7.03% | +13.21%Best |
| Volatility (annualized) | 13.7%Best | 15.1% |
| Max Drawdown | -43.5%Best | -56.5% |
| $10,000 over 5 years | $14,045 | $18,596Best |
| Top 10 Weight | 58.6% | 38.2%Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jun 12, 2000 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Jun 16, 2000 to Oct 14, 2026 (26.3 years).
IYH vs SPY 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 26.3 years both funds cover.
IYH vs SPY Performance
iShares US Healthcare ETF (IYH) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year IYH returned +23.50% while SPY returned +17.47%. Year to date, IYH is up 12.87% versus a gain of 13.53% for SPY.
Over three years, IYH compounded at +11.38% per year against +22.36% for SPY; over five years the annualized figures are +7.03% and +13.21% respectively. Across the full 26-year window we track, IYH has the edge at +7.17% annualized vs +6.81%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 13.7% for IYH. 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 -43.5% for IYH and -56.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYH charges 0.37% per year while SPY charges 0.09%. On a $10,000 position that is $37 vs $9 annually, a gap of $28 per year that compounds over a long holding period. On income, IYH currently yields 1.12% against 0.99% for SPY.
Holdings Overlap
87.7% of IYH's money is in holdings SPY also owns. 8.4% of SPY's money is in holdings IYH also owns.
Most of IYH is already inside SPY. Owning both mostly buys the same companies twice.
53 positions in common, counted across the 101 positions we hold weights for in IYH and 504 in SPY, against full books of 104 and 1,515.
What only one of them owns
Our book lists 444 positions for SPY that do not appear in our book for IYH (90.7% of the fund), and 44 for IYH that do not appear in SPY (10.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IYH | Weight in SPY | Difference |
|---|---|---|---|
| LLYEli Lilly & Co. | 14.69% | 1.37% | 13.32% |
| JNJJohnson & Johnson - Common | 9.97% | 0.98% | 8.99% |
| ABBVAbbvie Inc. | 7.36% | 0.70% | 6.66% |
| MRKMerck & Co. Inc. | 5.69% | 0.54% | 5.15% |
| UNHUnitedhealth Group Inc. | 5.28% | 0.53% | 4.75% |
| TMOThermo Fisher Scientific Inc | 3.88% | 0.35% | 3.53% |
| AMGNAmgen Inc | 3.52% | 0.31% | 3.21% |
| GILDGild Gilead Sciences Inc. | 2.93% | 0.28% | 2.65% |
| ABTAbbott Laboratories | 2.68% | 0.27% | 2.41% |
| PFEPfizer, Inc. | 2.56% | 0.24% | 2.32% |
87.7% of IYH is already inside SPY.
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, IYH or SPY?
IYH has an expense ratio of 0.37% while SPY charges 0.09%. SPY is the cheaper option, by $28 a year on a $10,000 investment.
Which performed better, IYH or SPY?
Over the past year IYH returned +23.50% vs +17.47% for SPY, so IYH leads on 1-year performance. Over the longest common window we track (26 years), IYH annualized +7.17% vs +6.81% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYH or SPY?
SPY has been the more volatile fund at 15.1% annualized versus 13.7% for IYH. Worst drawdown: IYH -43.5% vs SPY -56.5%.
Should I hold both IYH and SPY?
IYH and SPY have a monthly-return correlation of 0.72, 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 IYH and SPY?
87.7% of IYH's money is in holdings SPY also owns. 8.4% of SPY's is in holdings IYH also owns. They hold 53 positions in common, counted across the 101 positions we hold weights for in IYH and 504 in SPY.
Which pays a higher dividend, IYH or SPY?
IYH yields 1.12% while SPY yields 0.99%, so IYH currently pays the higher dividend yield.
Is SPY better than IYH?
SPY has a lower expense ratio. IYH led over 1Y and the full window, SPY over 3Y and 5Y. SPY is less concentrated, with 38.2% of the fund in its ten largest positions against 58.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.